HCL Technologies Limited (HCLTECH.NS) stock analysis

In our weekly check, HCL Technologies Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 1, red flags: 4.

About HCL Technologies Limited

HCL Technologies Limited is a Technology company (Information Technology Services) based in India, listed on NSE as HCLTECH.NS.

What our checks show for HCLTECH.NS

Red flags

• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The gross margin fell by 14.9 points, to 23.5%: costs are rising faster than prices.
• The dividend takes 8338% of profit: little cushion if profit falls.
• The stock has fallen as much as 75% from a peak. Would you have held through that?

Warning signs

• The net margin fell by 3 points over 5 years, to 12.8%: the company keeps less of each sale as profit.

Strengths

• Debt is low: 0.08x equity.
• Operating cash flow is 1.28x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 10% a year over the next years.
• Free cash flow is 15.2% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $40.55 billion.
• Beta 0.06: the stock usually moves less than the market.

Next earnings report: 2027-01-08

Similar companies

4307.T · 6701.T · 6702.T · TCS.BO · TECHM.NS

Questions

What grade does HCL Technologies Limited (HCLTECH.NS) have?

In our weekly check, HCL Technologies Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 1, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HCLTECH.NS stock?

This week's biggest flags for HCL Technologies Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 5 of 25 checks show a warning or a red flag.

What does HCL Technologies Limited do?

HCL Technologies Limited is a Technology company (Information Technology Services) based in India, listed on NSE as HCLTECH.NS.

When does HCL Technologies Limited report earnings next?

The next earnings report is expected on 2027-01-08. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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