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HCL Technologies Limited (HCLTECH) Fair Value & Analysis

Technology · IN · Market cap ₹3.3T

HT HCL Technologies Limited HCLTECH · NSE
Price₹1,335
Fair Value₹1,230
Upside-7.9%
Quality67/100
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Healthy Growth
Solidly profitable · 13.0% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Wide moat 73/100
Evidence: High Range ₹922.59 – ₹1,736 Share as image

Fair value as of: Jul 20, 2026

From 26 valuation models · updated 18 days ago

Share price +15.3% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (₹922.59 to ₹1,736) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,855 ₹727.46 Fair Value ₹1,230 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range ₹727.46 – ₹1,855 · fair‑value band ₹922.59 – ₹1,736 · the ₹1,335 price screens above the ₹1,230 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

HCL Technologies Limited (HCLTECH) currently trades at ₹1,335, while our model-based Fair Value estimate is ₹1,230, implying the stock looks roughly 7.9% fairly valued today. We read business quality at 67/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, HCL Technologies Limited generated revenue of ₹14.7B at a net margin of 12.8%. Revenue grew 5.3% year over year. It earns a return on equity of 23.4%. The balance sheet holds a net cash position of ₹182B. Fundamentals as of Jul 20, 2026

Our scenario range runs from ₹922.59 (bear case) to ₹1,736 (bull case); at ₹1,335, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -8%, HCLTECH screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹1,317 ₹2,651 ₹4,891 80
Residual Income ₹398.06 ₹474.74 ₹1,355 76
Rev-Margin DCF ₹1,151 ₹1,990 ₹3,745 74
All 26 models by family
DCF Models
FCF DCF ₹1,392 ₹2,191 ₹4,805 38
Owner Earnings ₹1,280 ₹2,884 ₹6,401 31
5Y Revenue Exit ₹1,051 ₹1,750 ₹3,212 39
5Y EBITDA Exit ₹1,172 ₹1,995 ₹3,608 41
5Y P/E Exit ₹1,140 ₹2,386 ₹4,074 38
10Y Revenue Exit ₹1,132 ₹2,373 ₹3,159 36
10Y EBITDA Exit ₹1,258 ₹2,640 ₹5,031 37
10Y P/E Exit ₹1,234 ₹2,570 ₹4,744 35
Earnings-Based
Graham-Dodd ₹418.24 ₹2,917 ₹4,093 54
Lynch FV ₹1,507 ₹2,153 ₹2,799 50
PEG = 1.0 ₹1,507 ₹2,153 ₹2,799 46
EPV ₹712.77 ₹823.30 ₹921.54 59
Dividend Discount
Gordon GGM ₹519.67 ₹1,135 ₹1,909 70
DDM Multi-Stage ₹519.67 ₹929.37 ₹1,182 61
Multiples
P/E Multiple ₹922.59 ₹1,230 ₹1,538 63
P/S Multiple ₹784.20 ₹1,046 ₹1,307 58
P/B Multiple ₹625.04 ₹833.39 ₹1,042 55
EV/EBIT ₹1,204 ₹1,576 ₹1,949 53
EV/EBITDA ₹1,050 ₹1,372 ₹1,693 54
EV/Revenue ₹839.69 ₹1,163 ₹1,485 43
Asset-Based
NCAV (Graham) ₹138.90 ₹186.12 ₹277.80 50
Growth DCF
Growth DCF ₹1,317 ₹2,651 ₹4,891 80
Rev-Margin DCF ₹1,151 ₹1,990 ₹3,745 74
Economic Profit
Residual Income ₹398.06 ₹474.74 ₹1,355 76
ROIC Compounder ₹934.26 ₹1,453 ₹2,163 72
Growth Earnings
Growth-Adj P/E ₹1,942 ₹2,774 ₹3,606 68

Widest divergence: Growth Earnings (₹2,774) versus Asset-Based (₹186.12). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹14.7B
Revenue growth (YoY) +5.3%
Net margin 12.8%
Return on equity 23.4%
Free cash flow ₹198B FY2026
P/E ratio 18.8
More key figures
Operating margin 16.5%
EPS (TTM) ₹61.31
Dividend yield 0.1%
EPS growth (YoY) -0.2%
Net cash ₹182B FY2026

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 73 · Market factors (momentum, volatility) 47

Profitability 70
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 93
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

HCL Technologies Limited provides IT and business services, engineering, research and development services, software products, and IP-led offerings. It operates through IT and Business Services, Engineering and R&D Services, and HCL Software segments.

Full company description

HCL Technologies Limited provides IT and business services, engineering, research and development services, software products, and IP-led offerings. It operates through IT and Business Services, Engineering and R&D Services, and HCL Software segments. The company provides application development, management, modernization, and testing services, as well as commercial applications; automation services, including digital integration, business process management, robotic process automation for intelligent automation, and low- and no-code services; digital process operations, such as customer experience management, hyper intelligent automation, supply chain management, finance and accounting, marketing operations and content, and human resource services; and data and AI services that consist of strategy and advisory, modernize data, simplify insights, and scale AI. It also offers commercial applications for sales, accounting, finance, HR, inventory, and manufacturing operations; cybersecurity services; systems engineering, simulation process and data management, manufacturing engineering, supplier collaboration, and digital thread and twin, as well as application, service, and product lifecycle management; and HCLTech Career Shaper, a learning and assessment platform. In addition, the company provides cloud engineering, digital platform engineering, digital commerce and manufacturing, silicon platform solutions, 5G engineering, SemiCloud, and AITech services; and IT enablement and service desk, unified communication and collaboration, workplace assessment and automation, mobility, and cloud office services. Further, it offers intelligent operations, internet of things, marketing services, operational technology, product engineering, supply chain, unified service management, and enterprise network solutions. The company has a strategic partnership with Cisco Systems, Inc. to launch a Fluid Contact Center solution that features AI and cloud-enabled capabilities to help enterprises transform customerengagement. The compa

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

HCL Technologies Limited reported revenue of ₹1.3T in FY2026 versus ₹872B in FY2022, a compound +10.5%/yr. Reported net income was ₹166B in FY2026, compounding +4.9%/yr from FY2022.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹1.3T
Latest YoY
+10.1%
Avg. growth/yr (3Y)
+8.0%
Avg. growth/yr (5Y)
+11.8%
Avg. growth/yr (22Y)
+19.4%
Revenue +10.5%/yr
FY22 ₹872B
FY23 ₹1.0T
FY24 ₹1.1T
FY25 ₹1.2T
FY26 ₹1.3T
Net income +4.9%/yr
FY22 ₹137B
FY23 ₹151B
FY24 ₹158B
FY25 ₹174B
FY26 ₹166B

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Cite: Fair Value Calculator (2026). "HCL Technologies Limited Fair Value". https://www.fairvalue-calculator.com/stock/HCLTECH

Peer Group

Information Technology Services · 482 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside −8% · Above median
Return on equity (TTM) 24% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 18.7× · Cheaper than median
P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 2.31× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
PEG 2.39× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 23 · sector 22
FUTURE 15 · sector 30
PAST 96 · sector 37
HEALTH 100 · sector 97
DIVIDEND 1 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%
LG CNS Co 064400 71,100 KRW 116,932 KRW +64%

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Frequently asked questions

Is HCL Technologies Limited (HCLTECH) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of ₹1,230 versus a price of ₹1,335, about −8% (fairly valued).
What is the fair value of HCLTECH?
Our model-based fair value for HCL Technologies Limited is ₹1,230 (as of Jul 20, 2026), built from audited fundamentals. The current price is ₹1,335.
What is the quality score of HCLTECH?
HCL Technologies Limited has a Quality Score of 67/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of HCL Technologies Limited (HCLTECH)?
HCL Technologies Limited reported trailing-twelve-month revenue of about ₹14.7B (latest available figure, as of Jul 20, 2026).
What is the net profit margin of HCLTECH?
The net profit margin of HCL Technologies Limited is about 12.8%, meaning it keeps roughly 12.8% of revenue as net income. Based on the latest reported figures.
Does HCL Technologies Limited pay a dividend?
HCL Technologies Limited currently shows a dividend yield of about 0.05% relative to its recent price (as of Jul 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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