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Top 2 Things To Know About HCL Technologies | HCL Complete Stock Analysis | HCL Technologies Limited


HCL Technologies Limited Complete Stock Analysis
HCL Technologies Limited

Introduction


HCL Technologies is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. Their technology products and services are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention and risk-taking, and a relentless focus on customer relationships. HCL also takes pride in its many diversity, social responsibility, sustainability, and education initiatives. Through its worldwide network of R&D facilities and co-innovation labs, global delivery capabilities, and over 168,000+ ‘Ideapreneurs’ across 50 countries, HCL delivers holistic services across industry verticals to leading enterprises, including 250 of the Fortune 500 and 650 of the Global 2000.


Enterprises across industries stand at an inflection point today. In order to thrive in the digital age, technologies such as analytics, cloud, IoT, and automation occupy centre stage. In order to offer enterprises the maximum benefit of these technologies to further their business objectives, HCL offers an integrated portfolio of products and services through three business units. These are IT and Business Services (ITBS), Engineering and R&D Services (ERS), and Products and Platforms (P&P).


ITBS enables global enterprises to transform their businesses via Digital Foundation, our modernized infrastructure stack built around hybrid cloud, software-defined networks, the digital workplace, and other elements; Digital Business, a combination of our application services and consulting capabilities; and Digital Operations, a three-pronged setup for modernized and efficient operations at enterprise level.


ERS offers engineering services and solutions in all aspects of product development and platform engineering.


Under P&P, HCL provides modernized software products to global clients for their technological and industry-specific requirements.


Their holistic Mode 1-2-3 strategy forms the backbone of these three business units to help enterprises navigate the digital age with ease. It is the core aspect of their ‘Digital Enterprise 4.0’ focus – aimed at offering holistic services to our clients to meet the technology needs of their present while readying them to be future-ready.


The company’s DNA of grassroots innovation, its ingrained culture of co-innovation, and its tradition of going far beyond what is expected, to create customer value, clearly differentiates it and gives it a distinct advantage in creating value for businesses in the digital and connected world.


Part 1 – Fundamental Analysis


Quarterly Overview


Strengths and Weaknesses Based On Yearly Performance


Strengths

Weaknesses


Opportunities for Computers – Software sector


The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55% market share of the US$ 200-250 billion global services sourcing business in 2019-20.


The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT industry recorded 138,000 new hires.


The IT & BPM industry’s revenue is estimated at ~US$ 194 billion in FY21, an increase of 2.3% YoY. The domestic revenue of the IT industry is estimated at US$ 45 billion and export revenue is estimated at US$ 150 billion in FY21.


Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies are focusing to invest internationally to expand global footprint and enhance their global delivery centers.


The data annotation market in India stood at ~ US$ 250 million in FY20, of which the US market contributed ~ 60% to the overall value. The market is expected to reach ~ US$ 7 billion by 2030 due to accelerated domestic demand for AI.


Indian IT's core competencies and strengths have attracted significant investment from major countries. The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 62.47 billion between April 2000 and September 2020. The sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT).


Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are diversifying their offerings and showcasing leading ideas in block-chain and artificial intelligence to clients using innovation hubs and research and development centers to create differentiated offerings.


India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50 55 billion of the total revenue.


Key Positions Based On Yearly Results


Management

  • Chairperson

Roshni Nadar Malhotra, the daughter of HCL Tech founder Shiv Nadar, serves as the Chairperson of the HCL Technologies Limited.

  • Managing Director

Founder Shiv Nadar is serving as Managing Director of the HCL Technologies Limited.


Shareholding Pattern as on 31st December, 2020

HCL Technologies Shareholding Pattern Complete Stock Analysis
HCL Technologies - Shareholding Pattern

Returns on Share


52 Week Higher Level: 1,067.00 INR


52 Week Lower Level: 516.00 INR


Peers


Infosys, TCS, Wipro, Tech Mahindra, etc.


Part 2 – Fundamental Analysis


HCL Technologies Technical Chart Complete Stock Analysis
HCL Technologies - Technical Chart

The above image shows the Daily candlestick chart of INFOSYS along with 5, 13 and 26 Days Exponential Moving Averages (EMA), Moving Averages Convergence-Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands (BB) and Volume.


After being for months in sideways trend the HCLTECH stock might offer a breakout and touch new heights as candlestick patterns are in favor of the same.


Currently, 912 and 961 levels are acting as support and resistance for HCLETECH.


Indicators


1. 5, 13 and 26 Days Exponential Moving Average

On 26th May, 2021 5 DEMA has successfully slash 26 DEMA from below showing a strong favor to bulls.


2. Moving Averages Convergence-Divergence (MACD) & MACD Histogram

MACD line has pierced the Signal line from below around 14th May, 2021 and still is in the favor of bulls along with rising MACD Histogram.


3. Relative Strength Index (RSI)

At present RSI for the stock is nearly to 53 levels. Not confirming a bullish trend.


4. Bollinger Bands

Currently, the stock is moving with upper Bollinger Band and is expected to move the same as MACD and EMA are performing well for the stock.


From above studies, 4 out of 3 indicators are giving a buy signal for the stock while RSI is acting as indecisive. If RSI also turns in favor of bulls i.e. above 60 levels we may see a good movement in the stock in upcoming days.


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