HCLTECH vs INFY
Side-by-side comparison of HCL Technologies Ltd. and Infosys Ltd.. Descriptive only — not investment advice.
HCL Technologies Ltd.
IT
Quality Score: 52/100
Infosys Ltd.
IT
Quality Score: 63/100
At a glance
| Metric | HCLTECH | INFY |
|---|---|---|
| Quality Score | 52/100 | 63/100 |
| P/E (trailing) | 19.5 | 15.6 |
| Forward P/E | 15.0 | 14.4 |
| ROE | +23.4% | +31.4% |
| Profit margin | +12.8% | +16.4% |
| Debt-to-equity | 6.93 | 9.83 |
| Dividend yield | +8.01% | +4.24% |
| 1Y price return | -20.9% | -19.7% |
| From 52w high | -31.4% | -31.8% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.95 | 1.90 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
HCLTECH trades at ₹1,198.40, down 20.86% over the past year and 31.39% below its 52-week high, sitting below both the 50-DMA (₹1,318.98) and 200-DMA (₹1,461.28). The Q4 FY26 earnings release in late April 2026 triggered a single-session decline of over 10% accompanied by brokerage target-price cuts, while management guided for muted FY27 growth. Trailing PE of 19.54 sits above larger peers despite a quality score (40) that ranks last among the six IT peers analyzed.
Infosys (INFY) trades at ₹1,179.20, down 19.68% over 12 months and 23.22% over 3 months, sitting 19% below its 200-DMA of ₹1,456. The stock holds the highest quality score (60) and second-highest ROE (31.44%) among six tracked IT peers, while trading at a trailing PE of 15.6 and forward PE of 14.4 — the lowest valuation multiple in the peer group.
Pros
- ✓ROE of 23.36% has remained above 15% in 4 of the available years, and FCF was positive in 4 of those years, indicating a degree of earnings and cash-generation consistency.
- ✓Forward PE of 14.97 represents a meaningful compression from the trailing PE of 19.54, implying that current analyst earnings estimates embed a recovery in profitability relative to today's price.
- ✓5-year revenue CAGR of 5.3% indicates the business has grown its top line in absolute terms even as net margin faced pressure (profit margin: 12.8%).
- ✓Dividend yield of 8.01% at current price is among the highest in large-cap IT, reflecting the extent of price decline rather than an elevated payout; the absolute dividend has remained in place through recent quarters.
- ✓ROE of 31.44% is second only to TCS (48.4%) among six IT peers, and has remained above 15% for 4 of 5 available years, indicating persistent capital efficiency.
- ✓Quality score of 60 ranks first in a peer group ranging from 40 to 59, reflecting the composite strength of profitability and balance-sheet metrics relative to IT comparables.
- ✓Trailing PE of 15.6 and forward PE of 14.4 are the lowest in the six-stock peer set (next lowest: WIPRO at 15.74), representing the sector's tightest valuation by earnings multiple.
- ✓Dividend yield of 4.24% and 5-year earnings CAGR of 10.2% provide income context alongside growth; FCF was positive in 4 of 5 available years.
Cons
- ✗Price has declined 24.69% over the past three months and remains below both the 50-DMA and 200-DMA with no identified technical support levels, leaving the nearest reference points as resistance levels at ₹1,447, ₹1,643, and ₹1,747.
- ✗Q4 FY26 results prompted multiple brokerages to cut target prices and the stock fell over 10% in a single session on 22-Apr-2026; management guided for muted FY27 revenue after what it called its fastest growth in three years — a combination of earnings disappointment and cautious forward guidance.
- ✗5-year earnings growth of -0.2% against 5-year revenue growth of 5.3% indicates that revenue gains have not translated into earnings expansion, compressing profit margins over the period.
- ✗Quality score of 40 ranks 6th (last) among 6 IT peers; D/E of 6.935 is materially higher than typically reported for large-cap IT software businesses and merits examination of the underlying liability composition.
- ✗Price is 19.0% below the 200-DMA (₹1,456) and 18.9% below the 50-DMA (₹1,261), with the 3-month decline of 23.22% accelerating versus the 12-month decline of 19.68%.
- ✗52-week drawdown of 31.76% from peak is among the sharpest declines in the IT large-cap space, with no near-term technical resistance until ₹1,377 — 16.8% above current price.
- ✗BMO Capital cut its price target following what it described as a weaker close to FY26, adding a near-term fundamental headwind to the technical pressure.
- ✗D/E of 9.83 is elevated for an IT-sector company; while FCF has been positive 4 of 5 years and debt trend is flat, the absolute leverage level warrants monitoring against revenue growth of 6.6% over 5 years.
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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.