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 ₹ 4,17,741 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 Q3 FY24 Results Highlight
- HCL Technologies Ltd reported a 6.23% rise in its net profit for Q3 FY24, reaching Rs 4,351 crore compared to Rs 4,096 crore in the previous year.
- The company’s total income surged to Rs 28,816 crore in Q3 FY24 from Rs 26,960 crore in the corresponding period last year.
- HCL Tech’s operating margin stood at 19.8%, showing a significant improvement of 126 basis points quarter-on-quarter and 16 basis points year-on-year.
- The board declared an interim dividend of Rs 12 per equity share for FY24, reflecting confidence in the company’s financial performance and commitment to shareholders.
- HCL Tech mentioned winning 18 large deals during the third quarter, comprising six in services and 12 in software, highlighting its strong market presence and growth trajectory.
- The total headcount reached 2,24,756 with a net addition of 3,617 employees, while the attrition rate dropped to 12.8%, down from 21.7% in Q3 last year, indicating improved employee retention strategies.
You can buy HCL Technologies shares from the following trading platforms:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
However, we recommend PayTM money.
| When | Maximum Price | Minimum Price |
| April 2024 | ₹1,549.90 | ₹1,347.74 |
| May 2024 | ₹1,527.00 | ₹1,327.82 |
| June 2024 | ₹1,581.97 | ₹1,375.62 |
| July 2024 | ₹1,566.15 | ₹1,361.87 |
| August 2024 | ₹1,628.79 | ₹1,416.34 |
| September 2024 | ₹1,693.94 | ₹1,473.00 |
| October 2024 | ₹1,660.73 | ₹1,444.11 |
| November 2024 | ₹1,727.16 | ₹1,501.88 |
| December 2024 | ₹1,744.43 | ₹1,516.90 |
In April 2024, HCL Tech’s share price is projected to reach a maximum of ₹1,549.90 and a minimum of ₹1,347.74. As the months progress, both the maximum and minimum prices are anticipated to gradually increase, with May seeing a maximum of ₹1,527.00 and a minimum of ₹1,327.82, and June continuing the upward trend with a maximum of ₹1,581.97 and a minimum of ₹1,375.62. By December 2024, HCL Tech’s share price is forecasted to reach its peak for the year, with a maximum of ₹1,744.43 and a minimum of ₹1,516.90, indicating sustained growth throughout the year.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹1,746.18 | ₹1,343.21 |
| February 2025 | ₹1,749.67 | ₹1,345.90 |
| March 2025 | ₹1,786.42 | ₹1,374.17 |
| April 2025 | ₹1,751.39 | ₹1,347.22 |
| May 2025 | ₹1,700.38 | ₹1,307.98 |
| June 2025 | ₹1,776.90 | ₹1,366.84 |
| July 2025 | 1,742.05 | ₹1,340.04 |
| August 2025 | ₹1,795.93 | ₹1,381.49 |
| September 2025 | ₹1,817.48 | ₹1,398.06 |
| October 2025 | ₹1,864.74 | ₹1,434.41 |
| November 2025 | ₹1,911.36 | ₹1,470.27 |
| December 2025 | ₹1,997.37 | ₹1,536.44 |
Throughout 2025, the trajectory of HCL Tech’s share prices is anticipated to vary. Starting in January with a maximum of ₹1,746.18 and a minimum of ₹1,343.21, the prices are expected to fluctuate month by month. This trend continues until December, where the share price is projected to peak at a maximum of ₹1,997.37 and a minimum of ₹1,536.44, reflecting the dynamic nature of the market and potential opportunities for investors.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹2,152.11 | ₹1,506.47 |
| 2027 | ₹2,367.32 | ₹1,657.12 |
| 2028 | ₹3,314.24 | ₹1,657.12 |
| 2029 | ₹2,869.47 | ₹1,434.74 |
| 2030 | ₹3,730.32 | ₹2,611.22 |
The forecast for HCL Technologies’ share prices from 2026 to 2030 suggests a trajectory of substantial growth and fluctuation. The projected range spans from ₹1,506.47 to ₹3,730.32 during these five years, indicating both potential peaks and troughs. Notably, the maximum price is expected to reach ₹3,730.32 in 2030, showcasing a significant upward trend. Investors are likely to find these projections intriguing, presenting opportunities for capitalizing on the anticipated growth in the technology sector.
However, the market’s dynamic nature and external factors such as global economic conditions and industry trends may influence the actual performance.
The ambitious target of ₹3,314.24 in 2028 highlights an optimistic outlook for HCL Tech’s future, while the fluctuations underscore the importance of strategic and informed investment decisions during this period. As with any financial projections, investors must conduct thorough research and stay attuned to market dynamics for a nuanced understanding of potential risks and rewards.
Financial Condition of HCL Technologies: Last 5 years
| HCL Tech Financials |
Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM |
|---|---|---|---|---|---|---|
| Sales | 60,427 | 70,676 | 75,379 | 85,651 | 101,456 | 104,288 |
| Expenses | 46,501 | 53,360 | 55,331 | 65,122 | 78,828 | 81,270 |
| Operating Profit | 13,926 | 17,316 | 20,048 | 20,529 | 22,628 | 23,018 |
| OPM % | 23% | 24% | 27% | 24% | 22% | 22% |
| Other Income | 943 | 589 | 927 | 1,067 | 1,358 | 1,293 |
| Interest | 174 | 505 | 511 | 319 | 353 | 375 |
| Depreciation | 2,073 | 3,420 | 4,611 | 4,326 | 4,145 | 4,089 |
| Profit before tax | 12,622 | 13,980 | 15,853 | 16,951 | 19,488 | 19,847 |
| Tax % | 20% | 21% | 30% | 20% | 24% | 24% |
| Net Profit | 10,120 | 11,057 | 11,169 | 13,523 | 14,845 | 15,095 |
| EPS in Rs | 37.31 | 40.75 | 41.07 | 49.74 | 54.73 | 55.65 |
| Dividend Payout % | 11% | 25% | 24% | 84% | 88% | – |
Over the last five years, HCL Technologies has demonstrated significant growth in its financial performance. From March 2019 to March 2023 (TTM – Trailing Twelve Months), the company’s sales revenue has increased from ₹60,427 crore to ₹104,288 crore, showcasing a steady upward trajectory. However, expenses have also seen substantial growth, rising from ₹46,501 crore to ₹81,270 crore over the same period. The operating profit has shown consistent improvement, reaching ₹23,018 crore in the TTM, while the operating profit margin (OPM %) has fluctuated but remains at a healthy 22%. Other income has also seen growth, with interest and depreciation expenses being well managed.
HCL Tech’s net profit has seen a commendable increase from ₹10,120 crore in March 2019 to ₹15,095 crore in the TTM. The earnings per share (EPS) has shown a consistent upward trend, reflecting positively on shareholder returns. However, the dividend payout percentage has notably increased, indicating a greater portion of profits being distributed as dividends to shareholders. Overall, HCL Technologies has demonstrated robust financial performance and growth over the past five years.
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 ₹1,997.37. 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 ₹3,730.32,
Also read:
- Cipla Share Price Target 2024, 2025 to 2030: Can CIPLA touch 5000 INR by 2030?
- Paytm (One97) Share Price Target 2024-2030: Should you buy it?
- Risk Management in Trading: How to Avoid Losing Money and Grow Your Portfolio?
Conclusion: Is HCL Technologies a good stock to buy for the long term?
HCL Technologies emerges as a stalwart in the global IT services sector, boasting a track record of consistent growth and innovation since its inception. With a focus on transformative outsourcing and a diverse portfolio of software-led solutions, the company has cemented its position among the top Indian IT services providers. Leveraging its extensive global infrastructure and strategic acquisitions, HCL Tech continues to adapt to evolving market trends, particularly in digital transformation and cloud-based services. The recent Q3 FY24 results underscore the company’s financial strength, marked by a rise in net profit to Rs 4,351 crore, strong operating margins of 19.8%, and impressive employee retention rates, with a drop-in attrition rate to 12.8%. Looking ahead, the projected share price targets for 2024 to 2030 indicate a promising trajectory of growth, positioning HCL Technologies as an enticing investment opportunity for those eyeing long-term gains in the technology sector.
What did we learn?
- 1 Stock history of HCL Technologies
- 2 HCL Technologies Q3 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 FAQS
- 7 Conclusion: Is HCL Technologies a good stock to buy for the long term?
