HCL Technologies Limited (HCLTECH) fair value: what the stock is really worth
We calculate from audited financials what HCL Technologies Limited is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 17, 2026.
How to read this chart
60‑month range ₹741.96 – ₹1,855 · fair‑value band ₹1,127 – ₹3,407 · the ₹1,270 price screens below the ₹2,006 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 17, 2026.
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.
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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
Stock analysis
HCL Technologies Limited (HCLTECH) currently trades at ₹1,270, while our model-based Fair Value estimate is ₹2,006, implying the stock looks roughly 36.7% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹3,109 per share, and 18 of the 26 models we run sit above the ₹1,270 price.
Bear case: the Economic Profit group reads lowest at ₹474.74, and 8 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: ₹1,127 (bear) to ₹3,407 (bull), the price of ₹1,270 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap ₹3.4T (≈ $36.2B) · P/E ratio 20.7 · P/S ratio 2.65 · EPS (TTM) ₹61.31 · Dividend yield 0.0% · Net margin 12.8% · Return on equity 23.4% · Return on assets (EBIT) 19.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (medium confidence).
What moves the price
The share trades about 27% below its 52-week high and 15% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 60% fair-value upside, at 58%, HCLTECH screens richer than that median.
Fair Value models
Bear ₹1,127Fair Value ₹2,006Bull ₹3,407
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹30.53 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+10.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.8%
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.4%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7% vs 9%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.21% → 17%
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+6.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.1%
Yearly sales growth analysts expect, extended to five years.
Compare HCL Technologies Limited with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Information Technology Services · 476 stocks
Beats the industry median on 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+33% · Above median
Profitability
Return on equity (TTM)24% · Top 25%
Return on assets13% · Top 25%
Net margin (TTM)13% · Top 25%
Operating margin (TTM)17% · Top 25%
Growth and dividend
Revenue growth3% · Below median
Dividend yield (TTM)0.0% · Bottom 25%
Valuation Multiplesvs Information Technology Services median · lower = cheaper
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Is HCL Technologies Limited (HCLTECH) overvalued or undervalued?
As of Sep 17, 2026, our model estimates a fair value of ₹2,006 versus a price of ₹1,270, about +58% upside (undervalued).
What is the fair value of HCLTECH?
Our model-based fair value for HCL Technologies Limited is ₹2,006 (as of Sep 17, 2026), built from audited fundamentals. The current price: ₹1,270.
What is the quality score of HCLTECH?
HCL Technologies Limited has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for HCL Technologies Limited (HCLTECH)?
Our model-based price target is the fair value of ₹2,006 (as of Sep 17, 2026) from 26 valuation models. Cautious scenario ₹1,127, optimistic scenario ₹3,407. It is a calculation from audited fundamentals, not an analyst target.
What is the HCL Technologies Limited stock forecast for 2026?
Our models put fair value at ₹2,006, about +58% upside versus a price of ₹1,270 (undervalued). Cautious scenario ₹1,127, optimistic scenario ₹3,407. The calculation is refreshed regularly with new filings.
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 Sep 17, 2026).
What growth is priced into HCL Technologies Limited (HCLTECH)?
For today's price to be fair in a discounted-cash-flow model, HCL Technologies Limited would have to grow free cash flow by +6.9 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.8 % per year. As of Sep 17, 2026.
What discount rate (WACC) does the fair value of HCLTECH use?
Our models discount HCL Technologies Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.05, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For HCL Technologies Limited that is +6.9 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has HCL Technologies Limited (HCLTECH) delivered so far?
Over the past 5 years revenue at HCL Technologies Limited grew +11.8 % a year. The price currently implies +6.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of HCL Technologies Limited (HCLTECH) growing?
The median revenue growth in the sector is +8.0 % a year. That is the yardstick for the growth priced into HCL Technologies Limited (+6.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of HCL Technologies Limited (HCLTECH)?
The free-cash-flow yield on the price is 5.74 %: that much free cash flow HCL Technologies Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of HCL Technologies Limited (HCLTECH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For HCL Technologies Limited it is ₹2,006 per share (as of Sep 17, 2026), against a price of ₹1,270. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is HCL Technologies Limited stock overvalued or undervalued in 2026?
As of Sep 17, 2026, HCLTECH trades below its calculated fair value: price ₹1,270, fair value ₹2,006, a gap of about +58% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HCLTECH?
No. The price is what the market pays today (₹1,270); the fair value is what the company's own numbers justify (₹2,006). For HCL Technologies Limited the two are ₹735.52 per share apart. That gap is exactly why we show both numbers side by side.
How much is HCL Technologies Limited worth?
The market values HCL Technologies Limited at about ₹3.4T (market capitalisation, as of Sep 17, 2026). Per share that is ₹1,270; our models calculate a fair value of ₹2,006 per share.
What do the bullish and bearish scenarios say about HCLTECH?
Our models span a range for HCL Technologies Limited: cautious scenario ₹1,127, base ₹2,006, optimistic ₹3,407 per share (as of Sep 17, 2026, price ₹1,270). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HCLTECH?
HCL Technologies Limited trades at a price-to-earnings ratio of 20.7 (as of Sep 17, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹2,006 is built from several models across several years. Other multiples: PEG 2.4, P/B 0.1, P/S 2.3.
What is the PEG ratio of HCLTECH?
The PEG ratio of HCL Technologies Limited is 2.39 (P/E divided by earnings growth, as of Sep 17, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of HCL Technologies Limited (HCLTECH)?
Balance-sheet figures for HCL Technologies Limited (as of Sep 17, 2026): return on equity 24.1%. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is HCLTECH from its 52-week high?
HCL Technologies Limited trades at ₹1,270, about 27% below its 52-week high of ₹1,747 and 15% above the low of ₹1,103 (as of Sep 17, 2026). Distance from the high says nothing about value: that is what the fair value of ₹2,006 is for.
Which stocks are comparable to HCL Technologies Limited?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is HCL Technologies Limited stock attractive at the current price?
The data as of Sep 17, 2026: price ₹1,270, calculated fair value ₹2,006 (+58%), Quality Score 74/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HCLTECH calculated?
We run HCL Technologies Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹2,006, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. HCL Technologies Limited currently trades 58 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of HCL Technologies Limited (HCLTECH)?
The closing price on Sep 22, 2026 was ₹1,270. Our model-based fair value is ₹2,006, about +58% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with HCL Technologies Limited right now?
The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict. The model range is unusually wide (₹1,127 to ₹3,407). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Where does the earnings growth of HCL Technologies Limited (HCLTECH) come from?
Earnings per share at HCL Technologies Limited grew +9.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +13.2 %, EBIT margin −2.4 %, tax rate −0.7 %, residual (interest, one-offs) −0.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of HCL Technologies Limited
How large is the market capitalisation of HCL Technologies Limited (HCLTECH)?
The market capitalisation of HCL Technologies Limited is ₹3.4T (≈ $36.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of HCL Technologies Limited (HCLTECH)?
The price-to-sales ratio of HCL Technologies Limited is 2.65 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of HCL Technologies Limited (HCLTECH)?
Earnings per share at HCL Technologies Limited are ₹61.31 (price ÷ EPS = P/E 20.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of HCL Technologies Limited (HCLTECH)?
The dividend yield of HCL Technologies Limited is 0.0% (payout 1.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of HCL Technologies Limited (HCLTECH)?
The net margin of HCL Technologies Limited is 12.8% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of HCL Technologies Limited (HCLTECH)?
The return on equity (ROE) of HCL Technologies Limited is 23.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of HCL Technologies Limited (HCLTECH)?
On an EBIT basis the return on assets of HCL Technologies Limited is 19.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of HCL Technologies Limited (HCLTECH)?
The operating margin of HCL Technologies Limited is 16.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at HCL Technologies Limited (HCLTECH)?
Revenue at HCL Technologies Limited is growing +5.3% versus a year earlier (3y avg +8.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at HCL Technologies Limited (HCLTECH)?
Earnings per share at HCL Technologies Limited are growing −0.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does HCL Technologies Limited (HCLTECH) hold?
HCL Technologies Limited holds more cash than debt, ₹182B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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