HCLTECH
HCL Technologies
HCL Technologies (HCLTECH) Stock Analysis & Case Study
Is HCLTECH a good buy? The data-driven verdict.
HCL Technologies (HCLTECH) trades at ₹1,130,on the numbers it screens attractive, a Downstox Snapshot Score of 72/100.
On the numbers, HCL Technologies (HCLTECH) screens attractive, a Downstox Snapshot Score of 72/100, weighing fairly valued at 17.7× earnings, ROE of 24.0%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027–2031.
Last updated . Data snapshot for research, not investment advice.
The Downstox take on HCLTECH
HCL Tech sits in an unusual spot for IT: 24% ROE and 30.6% ROCE mark a genuinely capital-light, cash-generative business, yet the P/E near 17.7 and a chunky 4.78% dividend yield read more like a mature payout machine than a growth darling. The market is treating it as a steady cash compounder, not a re-rating story. The wrinkle is the Piotroski F-Score at 4 of 9, which hints that recent earnings quality, margins or balance-sheet trends are not all pointing the same way. Watch whether profitability holds up well enough to keep funding that dividend without the underlying score slipping further.
Downstox editorial view, written by our own analysts. Information, not investment advice.
HCLTECH fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
Is HCLTECH overvalued? HCLTECH P/E vs its IT
HCLTECH's P/E of 17.7× sits above the IT peer median of 16.2×, so on earnings it screens in line with peers, while its 4.78% dividend yield is above the peer median of 4.03%.
The bull case for HCLTECH
- A 17.7× P/E sits in the fair-value band, neither cheap nor stretched.
- High return on equity (24.0%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
- Strong ROCE (30.6%) shows the core business earns well above its cost of capital.
- Pays a 4.8% dividend yield, so you're partly paid to wait.
The bear case & risks
- No model or past record guarantees future returns, treat this as one input, not a decision.
HCLTECH Piotroski F-Score: 4/9, how financially strong is it?
The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. HCLTECH scores 4/9,mixed financial health.
HCLTECH MTF margin & leverage, Upstox, Zerodha, Groww, Dhan
Margin Trading Facility lets you buy HCLTECH with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 28.6% | 3.5× |
| Zerodha | 24.4% | 4.1× |
| DhanCHEAPEST | 22.5% | 4.4× |
Compare every broker on the HCLTECH MTF page.
HCLTECH vs peers,IT comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| HCLTECH (this stock) | 17.7× | 4.78% | ₹3.07L Cr |
| TCS | 14.7× | 3.01% | ₹7.69L Cr |
| INFY | 14.4× | 4.51% | ₹4.32L Cr |
| WIPRO | 14.4× | 6.11% | ₹1.89L Cr |
| TECHM | 28.1× | 3.55% | ₹1.41L Cr |
| PERSISTENT | 39.7× | 0.72% | ₹76,699 Cr |
About HCL Technologies: sector, index & market-cap context
HCL Technologies (HCLTECH) is a large-cap NSE-listed company in the IT sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹3.07L Cr. See more Nifty 50 stocks.
How the HCLTECH Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of HCL Technologies's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.
This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.
HCLTECH analysis, FAQs
Is HCL Technologies (HCLTECH) a good buy?
On the numbers, HCL Technologies (HCLTECH) screens attractive, a Downstox Snapshot Score of 72/100, weighing fairly valued at 17.7× earnings, ROE of 24.0%. This is a data snapshot for research, not investment advice.
Is HCLTECH overvalued or undervalued?
HCLTECH trades at 17.7× earnings versus a peer median of 16.2×, so it screens richer than its IT peers.
What is the bull case for HCLTECH?
A 17.7× P/E sits in the fair-value band, neither cheap nor stretched. High return on equity (24.0%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise. Strong ROCE (30.6%) shows the core business earns well above its cost of capital.
What are the risks in HCLTECH?
No model or past record guarantees future returns, treat this as one input, not a decision.