HCLTECH vs TECHM
Side-by-side comparison of HCL Technologies Ltd. and Tech Mahindra Ltd.. Descriptive only — not investment advice.
HCL Technologies Ltd.
IT
Quality Score: 61/100
Tech Mahindra Ltd.
IT
Quality Score: 57/100
At a glance
| Metric | HCLTECH | TECHM |
|---|---|---|
| Quality Score | 61/100 | 57/100 |
| P/E (trailing) | 21.3 | 28.2 |
| Forward P/E | 17.0 | 18.8 |
| ROE | +24.1% | — |
| Profit margin | +13.0% | +8.7% |
| Debt-to-equity | 7.06 | 7.27 |
| Dividend yield | +4.42% | +3.12% |
| 1Y price return | -3.3% | +14.1% |
| From 52w high | -21.0% | -9.5% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.85 | 2.23 |
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).
Tech Mahindra trades at Rs 1,635, up 14.11% over the past year and 22% over the past 3 months, sitting 9.52% below its 52-week high and above both its 50-day (Rs 1,487.94) and 200-day (Rs 1,465.92) moving averages. Its trailing PE of 28.25 is the highest among 6 tracked IT peers (range 14.91-26.45), while its quality score of 45 is the lowest in the same set. Q1 FY26 profit rose 28% YoY to Rs 1,465 crore, though results were characterized as below street estimates by NDTV Profit and Moneycontrol.
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
- ✓Debt-to-equity of roughly 0.07x, on a falling trend.
- ✓Free cash flow positive in 4 of the last 5 tracked years.
- ✓Five-year revenue growth of 17.7% and earnings growth of 28.3%.
- ✓Price up 14.11% over 1 year and 22% over 3 months, trading above both the 50-day (Rs 1,487.94) and 200-day (Rs 1,465.92) moving averages.
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
- ✗Trailing PE of 28.25 is the highest among the 6 tracked IT sector peers (range 14.91-26.45).
- ✗Quality score of 45 is the lowest among the same 6 peers (range 53-60), ranking last on both PE and quality score.
- ✗Profit margin of 8.68% and a consistency score of 41 sit toward the lower end of tracked metrics, and current-period ROE is not populated.
- ✗Q1 FY26 results were characterized as below street estimates by NDTV Profit and Moneycontrol despite 28% YoY profit growth to Rs 1,465 crore; overall news sentiment across 8 tracked headlines is net negative (3 negative, 4 neutral, 1 positive).
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