One of the top five Indian IT services businesses in terms of revenue is HCL Tech, a well-known international provider of IT services. HCL Tech has focused on transformational outsourcing since its entry into the global market following its IPO in 1999. It offers an integrated portfolio of services, including software-led IT solutions, remote infrastructure management, engineering and R&D services, and BPO.
HCL Technologies with more than 2.5 lakh crore market capitalization is currently trading at more than 35% lower than the all time high of 1377.75. On comparing the fundamentals with its peers, its profit growth of 18.88% is more than even TCS which has market cap of more than 4 times of HCL and Infosys which has almost twice market cap as of HCL. HCL Tech dividend yield is the highest in the segment and it is nearly approaching to FD returns.
HCL Tech PE ratio standing at 18.78 while the industry PE at 25.05. It simply means that it is the cheapest share in the segment while giving more returns through dividend and the chances of capital appreciation in the stock price is more than its peers.
HCL Tech’s stock price CAGR for 3 years standing at 20% and CAGR for 5 years standing at 21%. When the current returns are checked its less than zero which simply means it is the best time to invest to reap profits in long term. Also, FIIs and DIIs both have invested good amount in this stock.
Technically, HCL stock is currently trading at 938.60 which is almost 36.56% down from its all time high. HCL tech consolidated for almost 6 years from 2014 till 2020 and it started its uptrend from March 2020 till 1 Nov 2021, the day when it has broken its uptrend and started trading lower than its lower low being formed. Now, the downtrend also seems to be broken and stock has formed double bottom pattern.
Though the previous high was at 965 which HCL Tech is not able to break on the closing basis.
So If stock price closes above 965 then it may be considered for the long term investment with short to medium term targets of 1022, 1038, 1060.
Above Information is for educational purpose only. No trades solicited.