HCLTECH vs TCS
Side-by-side comparison of HCL Technologies Ltd. and Tata Consultancy Services Ltd.. Descriptive only — not investment advice.
HCL Technologies Ltd.
IT
Quality Score: 61/100
Tata Consultancy Services Ltd.
IT
Quality Score: 67/100
At a glance
| Metric | HCLTECH | TCS |
|---|---|---|
| Quality Score | 61/100 | 67/100 |
| P/E (trailing) | 21.3 | 17.8 |
| Forward P/E | 17.0 | 15.1 |
| ROE | +24.1% | +47.7% |
| Profit margin | +13.0% | +18.1% |
| Debt-to-equity | 7.06 | 10.21 |
| Dividend yield | +4.42% | +2.68% |
| 1Y price return | -3.3% | -16.4% |
| From 52w high | -21.0% | -25.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.85 | 2.05 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
HCLTech trades at Rs 1,365.4, up 21.79% over the trailing three months but down 3.27% over the trailing one year and 21.03% below its 52-week high, sitting just below its 200-day moving average (Rs 1,371.29). The stock carries a PE of 21.27 (forward 17.05), ROE of 24.07%, and a five-year record of ROE above 15% in 4 of 5 years alongside positive free cash flow in 4 of 5 years. Mean analyst rating stands at 2.85 across 40 analysts (1-5 scale, lower = more constructive).
TCS trades at ₹2,445.70, up 10.09% over the trailing 3 months and 10.88% above its 50-DMA (₹2,205.77), but remains 6.21% below its 200-DMA (₹2,607.64), down 16.4% over the trailing 12 months and 25.6% below its 52-week high. ROE of 47.74% ranks 1st among 6 tracked IT peers and PE of 17.78 (forward PE 15.06) ranks 3rd-lowest of the group. Mean analyst rating is 2.05 across 42 analysts (1-5 scale, lower = more constructive).
Pros
- ✓ROE of 24.07% with 4 of the past 5 years above 15%, and free cash flow positive in 4 of 5 years
- ✓Debt-to-equity of roughly 0.07x with a flat debt trend, among the lowest leverage profiles in the peer set
- ✓Dividend yield of 4.42%
- ✓Recent news flow skews positive (4 positive vs 1 negative of 8 items), including a $1.48 billion AI data-center investment and a 5,000-seat tech hub MoU in Odisha
- ✓ROE of 47.74% ranks 1st among 6 tracked IT peers, ahead of the next-highest (Infosys at 32%).
- ✓ROE stayed above 15% in 4 of the last 5 years and free cash flow was positive in 4 of the last 5 years, per the persistence dataset.
- ✓PE of 17.78 (forward PE 15.06) ranks 3rd-lowest of 6 tracked IT peers, below Tech Mahindra (28.38) and LTM (27.48).
- ✓Price is up 10.09% over the trailing 3 months and sits 10.88% above the 50-DMA (₹2,205.77), with RSI at 61.89 (neutral).
Cons
- ✗Price remains below the 200-day moving average (Rs 1,371.29 vs Rs 1,365.4 current) and 21.03% below the 52-week high despite a 21.79% three-month rally
- ✗Composite quality score of 53 ranks 5th of 6 tracked large-cap IT peers, ahead of only Tech Mahindra (45)
- ✗Five-year revenue growth of just 3% trails five-year earnings growth of 8.4%
- ✗A roughly $50 million reduction in a Google engagement, with about 1,000 staff to be redeployed, was among recent headlines
- ✗Stock trades 6.21% below its 200-DMA (₹2,607.64), down 16.4% over the trailing 12 months and 25.6% below its 52-week high.
- ✗Five-year earnings growth (4.6%) trails five-year revenue growth (13.9%), and persistence data records a rising debt-to-equity trend, though the absolute D/E level (~0.10x) remains low.
- ✗Two of the 8 most recently tracked headlines (Aug 10) flagged alerts about possible employee data exposure; TCS said it found no evidence of a systems breach.
- ✗Persistence consistencyScore of 59 out of 100 reflects ROE staying above 15% in only 4 of the last 5 tracked years, not all 5.
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