HCL Technologies Ltd.
IT · NSE
52-week range
₹1,177 – ₹1,747
From 52w high
-31.4%
RSI (14)
32.8
vs SMA 50 / 200
↓ 50 · ↓ 200
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.
- ✓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.
- ✗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.
- ·On 22-Apr-2026, HCLTECH shares fell more than 10% following Q4 FY26 results, erasing over ₹38,000 crore in market capitalisation in a single session; multiple brokerages issued downgrade actions or target-price reductions in response.
- ·Management commentary after Q4 described FY27 growth outlook as muted, contrasting with what the company described as its fastest revenue growth in three years in FY26 — setting up a potential deceleration narrative heading into the new fiscal year.
- ·Mean analyst rating of 2.95 across 41 analysts (1–5 scale, lower = more constructive) reflects a broadly divided analyst community following the results week, sitting near the midpoint of the scale.
- ?Does the reported D/E of 6.935 reflect operating lease liabilities under Ind AS 116, or does it represent a genuine financial leverage position — and how does that distinction change the effective debt risk?
- ?Is the 8.01% dividend yield supported by FCF generation at current earnings levels, or does the payout ratio imply a potential dividend revision if FY27 growth comes in at the low end of guidance?
- ?Given that trailing PE (19.54) is above TCS and Infosys despite a lower quality score, what specific earnings or margin expansion would be required for the current multiple to be consistent with historical peer relationships?
- ?How much of the 31.39% drawdown from the 52-week high reflects sector-wide IT demand softness versus HCLTECH-specific execution or mix issues — and does the competitive positioning in software products (Mode 2/3) differ structurally from peers?
PE
19.5
Forward PE
15.0
ROE
+23.4%
Profit margin
+12.8%
D/E
6.93
Dividend yield
+8.0%
Quality score
40/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.