HCL Technologies
HCL Technologies
HCL Technologies Limited is a global IT services company, headquartered in Noida, Uttar Pradesh, India. Originally the research and development division of HCL Limited, it emerged as an independent company in 1991 when HCL Limited ventured into the software services business. HCL Technologies offers services including IT consulting, enterprise transformation, remote infrastructure management, engineering and R&D and business process outsourcing (BPO).
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Key Parameters |
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BSE Code |
532281 |
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NSE Code |
HCLTECH |
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Reuters Code |
HCLT.NS |
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INCEPTION |
NOVEMBER 1991 |
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IPO |
1999 |
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CMP (as on 23/09/2015) |
915 |
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Stock Beta |
0.557 |
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52 Week H/L |
707.50 / 1058.45 |
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Market Cap (Cr) |
1,30,850 |
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Equity Capital (Rs cr) |
140 |
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Face Value (Rs) |
2.00 |
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Average Volume |
13,82,590 |
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Shareholding Pattern (%) |
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Promoters |
60.58 |
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Non Institutions |
39.42 |
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Grand Total |
100.00 |
HCL Technologies Limited - Potential Catalysts
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Growth from IMS and Engineering Services
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Increasing client base
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Entering next generation technologies
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Efficiency and Higher service level due to streamlined process
HCL Technologies Limited - Recommendation
With Superior project management skills, focus on measuring and monitoring quality and its planned expansion HCL Technologies will be able to grow over the next few years. We recommend BUY on the stock at CMP of Rs. 915 to target of Rs. 1090 (Forward PE of 15.37x FY16).
HCL Technologies Limited - Financial Summary
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Yearly Financial Statement |
2014 |
2015 |
2016 P |
2017 P |
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Total Income |
32821.06 |
37767.21 |
43805.54 |
50842.17 |
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EBIDTA |
8712.69 |
9612.04 |
10868.88 |
12647.03 |
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EBIT |
8031.83 |
9208.29 |
10412.34 |
12115.80 |
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Adjusted PAT |
6509.51 |
7317.07 |
8402.03 |
9664.60 |
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EPS |
93.18 |
52.09 |
59.59 |
68.54 |
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EBIDTA Margin |
27.11% |
26.19% |
25.25% |
25.07% |
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EBIT Margin |
24.99% |
25.09% |
24.38% |
23.95% |
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PAT Margin |
19.83% |
19.37% |
19.18% |
19.01% |
HCL Technologies Limited - BUSINESS DISCRIPTION
HCL Technologies Limited (HCL) is a global technology company. The Company mainly operates in three segments: Software services, Information Technology (IT) Infrastructure services and Business Process Outsourcing services. Its services line includes, Business Services, Custom Application Services, Engineering and Research and Development (R&D) Services, Enterprise Application Services, Enterprise Transformation Services, IT Infrastructure Management Services and Outsourcing. It delivers solutions across a range of verticals, such as automotive, banking, chemical, energy (oil and gas) and utility, consumer electronics, financial services, consumer product goods, hi-tech, independent software vendor (ISV), insurance, life sciences, healthcare and pharmaceuticals, manufacturing, media, publishing and entertainment, retail, telecom, travel and tourism and logistics.
It operates across a number of industry verticals including aerospace and defense, automotive, consumer electronics, energy and utilities, financial services, government, independent software vendors, industrial manufacturing, life sciences and healthcare, media and entertainment, mining and natural resources, oil and gas, public services, retail and consumer, semiconductor, server and storage, telecom, and travel, transportation, logistics and hospitality.
Revenue Distribution
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In % |
Mar-15 |
Dec-15 |
Mar-15 |
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Financial Services |
26.9 |
26.6 |
26.1 |
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Manufacturing |
33.3 |
32.9 |
33.4 |
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Life science & Healthcare |
10.4 |
11.1 |
11.2 |
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Public Services |
10.1 |
9.5 |
10.4 |
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Retail & CPG |
8.5 |
9.7 |
8.4 |
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Telecommunications, Media & Entertainment |
8.4 |
8.4 |
9 |
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Others |
2.3 |
1.8 |
1.5 |
MANAGEMENT & GOVERNANCE
|
Anant Gupta |
President and Chief Executive Officer |
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Anil Kumar Chanana |
Chief Financial Officer |
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Manoj Kumbhat |
Senior Vice President & Chief Information Officer |
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Shiva Nadar |
Chairman and Chief Strategy Officer |
Shareholding pattern as on 30thJune, 2015
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Category |
No. of Shares |
Percentage % |
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Foreign (Promoter & Group) |
239097816 |
17.01 |
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Indian (Promoter & Group) |
612623012 |
43.57 |
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Non Promoter (Institution) |
470328259 |
33.45 |
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Non Promoter (Non-Institution) |
83929331 |
5.97 |
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Top Fund Holders (August) |
Market Value |
% Change MoM |
No of Shares |
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ICICI Prudential Mutual Fund |
1382.4516 |
7.55 |
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