HCL Tech is a prominent IT service provider company that holds a position among the top five Indian IT services companies in terms of revenues. With its initial public offering (IPO) in 1999, HCL Tech made its mark on the global landscape and has since been committed to transformative outsourcing. The company offers a comprehensive range of services, including software-led IT solutions, remote infrastructure management, engineering and R&D services, and BPO.
Leveraging its extensive global offshore infrastructure and a network of offices in 46 countries, HCL Tech excels in delivering multi-service solutions across various industry verticals. Established as an independent entity in 1991, HCLTech was founded by Shiv Nadar and has grown to a significant market cap of ₹3,79,411 cr.
With a focus on digital transformation and a recent announcement of upgrading State Farm’s IT operations, HCL Technologies is a company to watch. The question on everyone’s mind is, “Is HCL Technologies a good stock to buy for the long term?”
In this article, we will examine HCL Technologies’ past performance, current market trends, and future projections to determine the potential of HCL Technologies as a strong investment opportunity.
We will delve into the company’s strategic plans and growth prospects to answer the question of whether HCL Technologies is a good stock to buy in 2024 and beyond.
Stock history of HCL Technologies
HCL Technologies shares were first listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India in 1999.
In the early years of its stock history, HCL Technologies saw steady growth and expansion, as the demand for IT services increased globally. The company’s share price also reflected this growth, steadily rising over the years. During the tech boom of the late 1990s and early 2000s, HCL Technologies’ stock price saw significant gains, as the company capitalized on the growing demand for IT services.
However, the stock price faced a few challenges in the following years, with the global financial crisis of 2008 and the slowdown in the IT industry. Despite these setbacks, HCL Technologies continued to grow and expand, through a combination of organic growth and strategic acquisitions.
In recent years, HCL Technologies has been focusing on digital transformation and cloud-based services, which has helped the company to stay ahead of the curve in a rapidly changing market. The company’s share price has also benefited from these efforts, as investors recognize the potential of HCL Technologies in the digital space.
HCL Technologies Q4 FY24 Results Highlight
- HCL Technologies Ltd reported a flat year-on-year net profit of ₹3,986 crore for Q4 FY24, with a sequential decline of 8.4% from the previous quarter.
- The pre-tax profit (EBIT) amounted to ₹5,018 crore, reflecting a quarter-on-quarter decrease of 10.6% but a modest 3.8% increase compared to the previous year.
- Despite these fluctuations, HCL Tech demonstrated resilience with a 7.11% rise in revenue from operations, reaching ₹28,499 crore for the March quarter.
- Constant currency (CC) revenue witnessed a quarter-on-quarter uptick of 0.3% and a year-on-year rise of 6%, reflecting stability amidst currency fluctuations.
- The company declared an interim dividend of ₹18 per equity share for the financial year 2024-25, underscoring its commitment to delivering value to shareholders amidst evolving market conditions.
You can buy HCL Technologies shares from the following trading platforms:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| June 2024 | 1,509.84 | 1,312.90 |
| July 2024 | 1,494.74 | 1,299.78 |
| August 2024 | 1,554.53 | 1,351.77 |
| September 2024 | 1,616.71 | 1,405.84 |
| October 2024 | 1,585.01 | 1,378.27 |
| November 2024 | 1,632.56 | 1,419.62 |
| December 2024 | 1,673.38 | 1,455.11 |
As of June 6, 2024, HCL Tech’s share price is ₹1,398, with a market cap of ₹3,79,411 Cr. Predicted prices for the rest of 2024 range from ₹1,299.78 to ₹1,673.38. The stock’s P/E is 24.1, and its book value is ₹252.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,706.84 | 1,312.96 |
| February 2025 | 1,750.61 | 1,346.62 |
| March 2025 | 1,818.88 | 1,399.14 |
| April 2025 | 1,783.22 | 1,371.71 |
| May 2025 | 1,731.28 | 1,331.75 |
| June 2025 | 1,809.19 | 1,391.68 |
| July 2025 | 1,773.71 | 1,364.40 |
| August 2025 | 1,828.57 | 1,406.59 |
| September 2025 | 1,892.57 | 1,455.82 |
| October 2025 | 1,941.78 | 1,493.68 |
| November 2025 | 1,990.32 | 1,531.02 |
| December 2025 | 2,040.08 | 1,569.29 |
HCL Tech’s share price predictions for 2025 range from ₹1,312.96 in January to ₹2,040.08 in December, indicating a positive growth trajectory throughout the year.
| When | Maximum Price | Minimum Price |
| January 2026 | 2,101.28 | 1,616.37 |
| February 2026 | 2,155.16 | 1,657.82 |
| March 2026 | 2,239.21 | 1,722.47 |
| April 2026 | 2,195.31 | 1,688.70 |
| May 2026 | 2,131.37 | 1,639.51 |
| June 2026 | 2,227.28 | 1,713.29 |
| July 2026 | 2,183.61 | 1,679.70 |
| August 2026 | 2,251.14 | 1,731.65 |
| September 2026 | 2,329.93 | 1,792.25 |
| October 2026 | 2,390.51 | 1,838.85 |
| November 2026 | 2,450.27 | 1,884.82 |
| December 2026 | 2,511.53 | 1,931.94 |
HCL Tech’s share price predictions for 2026 show a steady rise, starting at ₹1,616.37 in January and potentially reaching ₹2,511.53 by December, indicating sustained growth throughout the year.
| When | Maximum Price | Minimum Price |
| January 2027 | 2,561.76 | 1,970.58 |
| February 2027 | 2,627.44 | 2,021.11 |
| March 2027 | 2,729.91 | 2,099.93 |
| April 2027 | 2,676.39 | 2,058.76 |
| May 2027 | 2,598.43 | 1,998.79 |
| June 2027 | 2,715.36 | 2,088.74 |
| July 2027 | 2,662.12 | 2,047.78 |
| August 2027 | 2,744.45 | 2,111.12 |
| September 2027 | 2,840.51 | 2,185.01 |
| October 2027 | 2,914.36 | 2,241.82 |
| November 2027 | 2,987.22 | 2,297.86 |
| December 2027 | 3,061.90 | 2,355.31 |
| When | Maximum Price | Minimum Price |
| January 2028 | 3,123.14 | 2,402.42 |
| February 2028 | 3,203.22 | 2,464.02 |
| March 2028 | 3,328.15 | 2,560.11 |
| April 2028 | 3,262.89 | 2,509.91 |
| May 2028 | 3,167.85 | 2,436.81 |
| June 2028 | 3,310.41 | 2,546.47 |
| July 2028 | 3,245.50 | 2,496.54 |
| August 2028 | 3,345.87 | 2,573.75 |
| September 2028 | 3,462.98 | 2,663.83 |
| October 2028 | 3,553.02 | 2,733.09 |
| November 2028 | 3,641.84 | 2,801.42 |
| December 2028 | 3,732.89 | 2,871.45 |
| When | Maximum Price | Minimum Price |
| January 2029 | 3,807.55 | 2,928.88 |
| February 2029 | 3,905.17 | 3,003.98 |
| March 2029 | 4,057.48 | 3,121.14 |
| April 2029 | 3,977.92 | 3,059.94 |
| May 2029 | 3,862.06 | 2,970.81 |
| June 2029 | 4,035.85 | 3,104.50 |
| July 2029 | 3,956.71 | 3,043.63 |
| August 2029 | 4,079.09 | 3,137.76 |
| September 2029 | 4,221.86 | 3,247.58 |
| October 2029 | 4,331.62 | 3,332.02 |
| November 2029 | 4,439.91 | 3,415.32 |
| December 2029 | 4,550.91 | 3,500.70 |
| When | Maximum Price | Minimum Price |
| January 2030 | 4,641.93 | 3,570.72 |
| February 2030 | 4,760.95 | 3,662.27 |
| March 2030 | 4,946.63 | 3,805.10 |
| April 2030 | 4,849.64 | 3,730.49 |
| May 2030 | 4,708.39 | 3,621.84 |
| June 2030 | 4,920.26 | 3,784.82 |
| July 2030 | 4,823.79 | 3,710.61 |
| August 2030 | 4,972.98 | 3,825.37 |
| September 2030 | 5,147.03 | 3,959.26 |
| October 2030 | 5,280.85 | 4,062.20 |
| November 2030 | 5,412.88 | 4,163.75 |
| December 2030 | 5,548.20 | 4,267.84 |
Financial Condition of HCL Technologies: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 70,676 | 75,379 | 85,651 | 101,456 | 109,913 |
| Expenses + | 53,360 | 55,331 | 65,122 | 78,828 | 85,715 |
| Operating Profit | 17,316 | 20,048 | 20,529 | 22,628 | 24,198 |
| OPM % | 24% | 27% | 24% | 22% | 22% |
| Other Income + | 589 | 927 | 1,067 | 1,358 | 1,495 |
| Interest | 505 | 511 | 319 | 353 | 553 |
| Depreciation | 3,420 | 4,611 | 4,326 | 4,145 | 4,173 |
| Profit before tax | 13,980 | 15,853 | 16,951 | 19,488 | 20,967 |
| Tax % | 21% | 30% | 20% | 24% | 25% |
| Net Profit + | 11,057 | 11,169 | 13,523 | 14,845 | 15,710 |
| EPS in Rs | 40.75 | 41.07 | 49.74 | 54.73 | 57.86 |
| Dividend Payout % | 25% | 24% | 84% | 88% | 90% |
The financials of the company show a consistent upward trajectory over the past five years. Sales have steadily increased from ₹70,676 crore in March 2020 to ₹109,913 crore in March 2024, indicating a robust growth trend. Despite the rise in expenses, the operating profit has shown significant improvement, reaching ₹24,198 crore in March 2024, compared to ₹17,316 crore in March 2020. The operating profit margin (OPM) has remained stable at around 22-27% over the period, reflecting efficient cost management. Other income has also increased steadily, contributing to the overall profitability of the company. The net profit has shown consistent growth, rising from ₹11,057 crore in March 2020 to ₹15,710 crore in March 2024, demonstrating the company’s ability to generate sustainable returns for its shareholders. Earnings per share (EPS) have followed a similar upward trend, indicating enhanced shareholder value. Additionally, the dividend payout percentage has progressively increased, reflecting the company’s commitment to rewarding its shareholders while maintaining financial stability and growth. Overall, the financials portray a positive picture of the company’s performance and financial health, characterized by steady revenue growth, improved profitability, and shareholder-friendly policies.
Consensus Share Price Target recommends purchasing HCL Tech, with a target price set at Rs 1611.88.
FAQS
Yes, our analysis suggests that HCL Technologies is likely to see continued success and growth in the coming years, making it a potentially attractive investment opportunity for those looking to capitalize on the company’s long-term growth potential.
In 2025, the maximum share price target of HCL Tech is projected to reach ₹2,040.08. This uptrend in the company’s share price is expected to suggest a continued positive outlook for HCL Technologies.
Can HCL Tech reach 6000 INR?
Yes, HCL Tech could reach 6000 INR by 2035.
By the end of 2030, the share price of HCL Technologies is expected to reach around ₹5,548.20.
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Conclusion: Is HCL Technologies a good stock to buy for the long term?
In conclusion, HCL Technologies stands as a stalwart in the IT services sector, boasting a rich history of delivering innovative solutions to global clients. Its strategic focus on digital transformation and cloud-based services has propelled it to the forefront of the industry, solidifying its position among the top Indian IT services companies. Despite facing market challenges, HCL Tech has exhibited resilience and adaptability, as evidenced by its steady revenue growth and commitment to shareholder value.
The Q4 FY24 results exemplify HCL Tech’s ability to navigate through market fluctuations, with a commendable rise in revenue to ₹28,499 crore, despite a sequential decline in net profit to ₹3,986 crore. The declaration of an interim dividend of ₹18 per equity share further underscores the company’s dedication to rewarding its shareholders. Looking ahead, the projected share price targets indicate promising growth prospects for investors, reflecting confidence in HCL Tech’s long-term trajectory.
With its strong financial performance, strategic initiatives, and unwavering commitment to innovation, HCL Technologies emerges as an attractive investment opportunity for those seeking exposure to the dynamic IT services sector. However, prudent investors should conduct thorough due diligence and consider various factors before making investment decisions. Overall, HCL Technologies stands poised for continued success and value creation in the years to come.
What did we learn?
- 1 Stock history of HCL Technologies
- 2 HCL Technologies Q4 FY24 Results Highlight
- 3 How to Buy HCL Technologies shares?
- 4 HCL Technologies Share Price Prediction: 2024 to 2030
- 5 Financial Condition of HCL Technologies: Last 5 years
- 6 HCL Tech Share Price Target by Experts
- 7 FAQS
- 8 Conclusion: Is HCL Technologies a good stock to buy for the long term?
