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HCL Technologies Limited (HCLTECH) Fair Value & Analysis

Technology · IN · Market cap ₹3.3T (≈ $34.5B) · ISIN INE860A01027

What is HCL Technologies Limited really worth?

HT HCL Technologies Limited HCLTECH · NSE
Price₹1,293
Fair Value₹1,722
Upside+33.2%
Quality74/100

A solid business, trading 25% below our fair value of ₹1,722.

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Strengths

Healthy Growth (revenue 5y +11.8 %/yr)
Solidly profitable · 13.0% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)
Wide moat 73/100

Risks

!Evidence only medium, so the estimate is less certain
!Weak on future: 15 out of 100
!Weak on dividend: 1 out of 100
Evidence: Medium Range ₹1,292 – ₹2,153

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Share price −4.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

₹1,855 ₹735.95 Fair Value ₹1,722 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹735.95 – ₹1,855 · fair‑value band ₹1,292 – ₹2,153 · the ₹1,293 price screens below the ₹1,722 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

HCL Technologies Limited (HCLTECH) currently trades at ₹1,293, while our model-based Fair Value estimate is ₹1,722, implying the stock looks roughly 24.9% undervalued today. The Quality Score stands at 74/100 (solid quality), in the Technology sector. 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 ₹1,293 price. Bear case: the Asset-Based group reads lowest at ₹186.12, and 8 of the 26 models stay below the price. Evidence for this calculation is medium.

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. The stock trades on a trailing P/E of 21.1. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹1,292 (bear case) to ₹2,153 (bull case); at ₹1,293, 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 26% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at 33%, HCLTECH screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹27.39 per share, which is 1.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model 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
Highest evidence
EPV best evidence ₹712.77 ₹823.30 ₹921.54 74
FCF DCF ₹1,392 ₹2,191 ₹4,805 72
Growth DCF ₹1,317 ₹2,651 ₹4,891 72
All 26 models by family
DCF Models
FCF DCF ₹1,392 ₹2,191 ₹4,805 72
Owner Earnings ₹1,280 ₹2,884 ₹6,401 68
5Y Revenue Exit ₹1,051 ₹1,750 ₹3,212 67
5Y EBITDA Exit ₹1,459 ₹2,575 ₹4,765 69
5Y P/E Exit ₹1,426 ₹3,119 ₹5,433 65
10Y Revenue Exit ₹1,132 ₹2,373 ₹3,159 64
10Y EBITDA Exit ₹1,472 ₹3,271 ₹6,441 62
10Y P/E Exit ₹1,447 ₹3,198 ₹6,095 58
Earnings-Based
Graham-Dodd ₹418.24 ₹2,917 ₹4,093 61
Lynch FV ₹1,507 ₹2,153 ₹2,799 59
PEG = 1.0 ₹1,507 ₹2,153 ₹2,799 55
EPV best evidence ₹712.77 ₹823.30 ₹921.54 74
Dividend Discount
Gordon GGM ₹519.67 ₹1,135 ₹1,909 63
DDM Multi-Stage ₹519.67 ₹929.37 ₹1,182 64
Multiples
P/E Multiple ₹1,292 ₹1,722 ₹2,153 63
P/S Multiple ₹784.20 ₹1,046 ₹1,307 58
P/B Multiple ₹784.20 ₹1,046 ₹1,307 55
EV/EBIT ₹1,576 ₹2,073 ₹2,570 66
EV/EBITDA ₹1,421 ₹1,866 ₹2,311 67
EV/Revenue ₹839.69 ₹1,163 ₹1,485 54
Asset-Based
NCAV (Graham) ₹138.90 ₹186.12 ₹277.80 54
Growth DCF
Growth DCF ₹1,317 ₹2,651 ₹4,891 72
Rev-Margin DCF ₹1,151 ₹1,990 ₹3,745 67
Economic Profit
Residual Income ₹398.06 ₹474.74 ₹1,355 64
ROIC Compounder ₹934.26 ₹1,453 ₹2,163 68
Growth Earnings
Growth-Adj P/E ₹2,176 ₹3,109 ₹4,041 65

Widest divergence: Growth Earnings (₹3,109) versus Asset-Based (₹186.12). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 21.1
P/S ratio 2.70 P/E × margin
EPS (TTM) ₹61.31 price ÷ EPS = P/E 21.1
Dividend yield 0.0% payout 1.0%
Net margin 12.8% FY2026
Return on equity 23.4% TTM
More key figures
Profitability
Return on assets (EBIT) 19.7% avg 5y
Operating margin 16.5% TTM
Growth
Revenue growth (YoY) +5.3% 3y avg +8.0%
EPS growth (YoY) −0.2%
Balance sheet & cash flow
Free cash flow ₹198B FY2026
Net cash ₹182B FY2026

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 73 · Market factors (momentum, volatility) 53

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 85
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 32
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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. revenue growth/yr (3Y) 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.
+8.0%
Avg. revenue growth/yr (5Y) 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.
+11.8%
Avg. revenue growth/yr (22Y) 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.
+19.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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% (7.3 + 0.0)
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
Character of growth · EPS growth decomposed (2015-2026) +9.5 % p.a.
Revenue per share +13.2 %

of which total revenue +12.6 % · buybacks/dilution +0.5 %

EBIT margin −2.4 %
Tax rate −0.7 %
Residual (interest, one-offs) −0.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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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 · 487 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 74 · Top 25%
Fair Value upside +33% · 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) 0.0% · Bottom 25%

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 21.1× · Pricier than median
P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 2.34× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
PEG 2.39× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE77 · sector 33
FUTURE15 · sector 31
PAST96 · sector 33
HEALTH100 · sector 97
DIVIDEND1 · sector 35

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

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.59 $175.76 −25%
Accenture plc ACN $189.61 $334.27 +76%
Tata Consultancy Services Limited TCS ₹2,302 ₹3,473 +51%
Infosys Limited INFY ₹1,156 ₹1,958 +69%
Fiserv, Inc FI C$5.13 C$8.07 +57%
Wipro Limited WIT $1.83 $3.51 +92%
Fidelity National Information Services, Inc FIS $41.34 $19.28 −53%
Cognizant Technology Solutions Corporation CTSH $64.04 $132.01 +106%
Capgemini SE CAP €109.45 €222.79 +104%
CDW Corporation CDW $153.92 $179.36 +17%

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Frequently asked questions

Is HCL Technologies Limited (HCLTECH) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹1,722 versus a price of ₹1,293, about +33% upside (undervalued).
What is the fair value of HCLTECH?
Our model-based fair value for HCL Technologies Limited is ₹1,722 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹1,293.
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 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 Aug 27, 2026).
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