HCL Technologies Limited

HCLTECH.NS

Information Technology Services · Technology

Price

₹1318.60

+22.70 (+1.75%)

Market Cap

₹3.57T

Exchange

National Stock Exchange of India

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Jul 28, 2026 · filings through Jun 30, 2026

HCL Technologies is a large Indian technology company that helps other businesses run their computer systems, build software, and manage their IT operations. Its main services include software development, cloud computing, cybersecurity, and IT infrastructure management. It serves large companies in industries like banking, healthcare, manufacturing, and retail around the world.

HCL makes money by charging clients fees for ongoing services, long-term outsourcing contracts, and software products sold under its HCLSoftware division. The company operates in over 60 countries and employs more than 220,000 people, making it one of India's largest IT services firms. Its competitive edge comes from large, multi-year contracts that are costly for clients to exit, plus a lower-cost delivery model based in India. The key growth driver is rising demand for cloud migration and AI-related services, though the main risk is slowing technology spending by large corporations in the US and Europe, which are HCL's biggest markets.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+6.3% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

61.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$347.5B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

HCL Technologies Limited is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.71B (2022) → 2.71B (2026)

Score breakdown

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Quality

Gross Margin

22.8%

Thin — 22.8% gross margin

Operating Margin

16.9%

Healthy — 16.9% operating margin

ROCE

7.9%

Weak — 7.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+12.9%

Fast-growing sales (12.9% YoY)

EPS YoY

+3.7%

Modest earnings growth (3.7% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

115%

Turns 115% of profit into real cash

FCF Margin

13.9%

Converts sales into free cash efficiently (13.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

31.44x

Comfortably covers interest (31.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

20.4x

Growth-priced — P/E 20.4

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+3.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (20.4 → 17.2)

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Dividends

Dividend Yield

4.55%

Healthy income — 4.55% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+0.0%

Dividend flat

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