Hexaware Technologies Vs HCL Technologies – Which Tech Stock Offers Long-Term Gains?
Blog by Aliceblue News Desk
12 May 2025
16 minutes
Table of Contents
Company Overview of HCL Technologies Ltd
HCL Technologies Limited is an India-based company specializing in technology services and products. The company operates through three main business segments: IT and Business Services (ITBS), Engineering and R&D Services (ERS) and HCLSoftware.
The ITBS segment offers a range of IT and business services such as application management, infrastructure support, analytics, IoT, cloud and cybersecurity solutions. The ERS segment provides engineering services and solutions in software, embedded systems and mechanical engineering. The HCLSoftware segment delivers modern software products tailored to meet the specific needs of global clients across different technologies and industries.
Company Overview of Hexaware Technologies Ltd
Hexaware Technologies Ltd is a global IT and business process outsourcing (BPO) services provider headquartered in Navi Mumbai, India. Established in 1992, the company offers a comprehensive range of services, including cloud computing, data analytics, cybersecurity, enterprise automation and digital transformation solutions.
Hexaware caters to various industries such as banking, financial services, insurance, healthcare, manufacturing, retail, telecom and transportation. With a workforce of over 32,000 employees across more than 50 global offices, Hexaware has built a strong presence in North America, Europe and the Asia-Pacific region.
The Stock Performance of HCL Technologies
The table below displays the month-by-month stock performance of HCL Technologies Ltd for the past year.
| Month | Return (%) |
| Apr-2024 | -11.78 |
| May-2024 | -2.5 |
| Jun-2024 | 8.07 |
| Jul-2024 | 12.12 |
| Aug-2024 | 6.9 |
| Sep-2024 | 1.81 |
| Oct-2024 | -1.34 |
| Nov-2024 | 4.0 |
| Dec-2024 | 3.75 |
| Jan-2025 | -10.01 |
| Feb-2025 | -8.75 |
| Mar-2025 | 1.11 |
The Stock Performance of Hexaware Technologies Ltd
The table below displays the month-by-month stock performance of Hexaware Technologies Ltd for the past year.
| Month | Return (%) |
| Feb-2025 | 8.44 |
| Mar-2025 | -12.73 |
Fundamental Analysis of HCL Technologies Limited
HCL Technologies Ltd is a leading global technology company based in India, renowned for its innovative IT services and solutions. Founded in 1976, HCL has established itself as a prominent player in the IT landscape, offering a variety of services, including software development, infrastructure management and digital transformation. The company serves a diverse clientele across multiple industries, leveraging advanced technologies to enhance business processes and drive growth.
The stock closed at ₹1380.00 with a market cap of ₹374017.16 crore. It offers a dividend yield of 3.77%. Over one year, it has returned -10.34% and over six months, -23.70%. The 5-year CAGR is 24.09%, with a profit margin average of 14.85%.
- Close Price ( ₹ ): 1380.00
- Market Cap ( Cr ): 374017.16
- Dividend Yield %: 3.77
- 1Y Return %: -10.34
- 6M Return %: -23.70
- 1M Return %: -11.57
- 5Y CAGR %: 24.09
- % Away From 52W High: 45.81
- 5Y Avg Net Profit Margin %: 14.85
Fundamental Analysis of Hexaware Technologies Limited
Hexaware Technologies Limited is a dynamic company focused on leveraging technology to provide innovative solutions across various industries. Established with a vision to enhance operational efficiency and drive growth, Hexaware Technologies Limited specializes in developing software and digital tools that empower businesses.
The stock closed at ₹634.30, with a market capitalization of ₹38,546.07 crore and a dividend yield of 1.38%. The one-year return is -16.82%, the six-month return is also -16.82% and the one-month return is -18.94%. Its five-year average net profit margin is 9.80%.
- Close Price ( ₹ ): 634.30
- Market Cap ( Cr ): 38546.07
- Dividend Yield %: 1.38
- 1Y Return %: -16.82
- 6M Return %: -16.82
- 1M Return %: -18.94
- % Away From 52W High: 33.53
- 5Y Avg Net Profit Margin %: 9.80
Financial Comparison of HCL Technologies and Hexaware Technologies Ltd
The table below shows a financial comparison of HCL Technologies Ltd and Hexaware Technologies Ltd.
| Stock | HCLTECH | HEXT | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 102814.0 | 111408.0 | 117760.00 | 10402.7 | 12049.30 | 10530.89 |
| EBITDA (₹ Cr) | 23986.0 | 25693.0 | 27591.00 | 1594.0 | 1905.10 | 1628.93 |
| PBIT (₹ Cr) | 19841.0 | 21520.0 | 23454.00 | 1310.4 | 1626.30 | 1327.48 |
| PBT (₹ Cr) | 19488.0 | 20967.0 | 22795.00 | 1268.5 | 1560.30 | 1263.71 |
| Net Income (₹ Cr) | 14851.0 | 15702.0 | 17069.00 | 997.6 | 1176.40 | 977.00 |
| EPS (₹) | 54.73 | 57.86 | 62.90 | 16.48 | 19.37 | 16.10 |
| DPS (₹) | 48.0 | 52.0 | 54.00 | 8.75 | 8.75 | 0.00 |
| Payout ratio (%) | 0.88 | 0.9 | 0.86 | 0.53 | 0.45 | 0.00 |
Points to be noted:
- (TTM) Trailing 12 Months: Trailing 12 months (TTM) describes the past 12 consecutive months of a company’s performance data when reporting financial figures.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of HCL Technologies and Hexaware Technologies Ltd
Both HCL and Hexaware Technologies maintain consistent dividend payments, with HCL offering an interim dividend of ₹12 in January 2025 and a special dividend of ₹6. Hexaware Technologies declared ₹5.75 in April 2025, showcasing reliable returns for investors. Check the table for complete details.
| HCL | Hexaware Technologies | ||||||
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
| 13 January, 2025 | 17 January, 2025 | Interim | 12 | 7 April, 2025 | 15 April, 2025 | Interim | 5.75 |
| 14 January, 2025 | 17 January, 2025 | Special | 6 | ||||
| 17 September, 2024 | 22 October, 2024 | Interim | 12 | ||||
| 18 Jun, 2024 | 23 July, 2024 | Interim | 0 | ||||
| 20 Mar, 2024 | 7 May, 2024 | Interim | 18 | ||||
| 15 Dec, 2023 | 19 January, 2024 | Interim | 12 | ||||
| 15 Sep, 2023 | 20 October, 2023 | Interim | 12 | ||||
| 15 Jun, 2023 | 20 Jul, 2023 | Interim | 10 | ||||
| 17 Mar, 2023 | 28 Apr, 2023 | Interim | 18 | ||||
Advantages and Disadvantages of Investing in HCL Technologies
HCL Technologies Ltd
The primary advantage of HCL Technologies Ltd lies in its strong market position in the global IT services industry, offering diverse services like cloud computing, automation and digital transformation.
- Comprehensive Service Portfolio: HCL Technologies offers a wide range of IT services, including cloud computing, cybersecurity, IT infrastructure management and enterprise automation. This diverse service portfolio allows the company to cater to a variety of industries, ensuring stable revenue growth.
- Global Presence: With operations in over 40 countries, HCL Technologies has a strong global presence. This geographical diversification allows the company to tap into different markets, minimizing regional risks and ensuring continued growth across various sectors.
- Strong Client Relationships: HCL Technologies has long-term relationships with key clients in industries like banking, healthcare and telecommunications. These strategic partnerships help drive revenue, as the company becomes integral to the clients’ digital transformation and technology adoption processes.
- Commitment to Innovation: HCL invests heavily in R&D to stay ahead of emerging technological trends like artificial intelligence, machine learning and automation. This innovation-driven approach allows the company to deliver cutting-edge solutions, giving it a competitive edge in the rapidly evolving tech landscape.
- Strong Financial Performance: HCL Technologies has consistently demonstrated strong financial performance with steady revenue and profit growth. The company’s robust financials and operational efficiency ensure long-term stability and attract investors looking for consistent returns in the IT services sector.
The main disadvantage of HCL Technologies Ltd is its reliance on a few large clients, particularly in industries like banking and healthcare. This client concentration creates risk, as any shift in client demand or contract reduction can impact revenue stability.
- Client Dependency: A significant portion of HCL’s revenue comes from key clients, especially in sectors like banking and financial services. Losing or reducing business from these clients could significantly affect the company’s overall financial performance and growth prospects.
- High Competition: The IT services industry is highly competitive, with major players like TCS, Infosys and Wipro vying for market share. HCL must continuously innovate and offer differentiated services to maintain its competitive position, especially against larger firms with more resources.
- Economic Sensitivity: As a global IT services provider, HCL is exposed to economic fluctuations in key regions such as North America and Europe. Economic slowdowns in these markets can lead to reduced IT spending, negatively impacting HCL’s revenue and growth.
- Technology Integration Challenges: With rapid technological advancements, HCL faces the challenge of continuously adapting to new technologies like AI, machine learning and blockchain. Any delay in incorporating these technologies could hinder the company’s ability to offer cutting-edge solutions and remain competitive.
- Currency Exchange Risks: HCL operates in multiple international markets, exposing it to currency exchange rate risks. Fluctuations in currency values, particularly between the Indian Rupee and major currencies like the US Dollar, can affect profitability and margins from global revenues.
Advantages and Disadvantages of Investing in Hexaware Technologies Ltd
Hexaware Technologies Ltd
The primary advantage of Hexaware Technologies Ltd lies in its specialized services in automation, artificial intelligence and cloud computing. With a focus on digital transformation, Hexaware helps businesses across various industries optimize operations and stay ahead of technological trends.
- Focus on Digital Transformation: Hexaware specializes in driving digital transformation for clients, offering services in AI, cloud computing and automation. This focus on cutting-edge technologies helps clients improve efficiency, reduce costs and enhance customer experiences, making Hexaware a leader in this space.
- Global Presence: Hexaware operates in over 50 countries, providing services to clients across North America, Europe and Asia-Pacific. This global footprint allows the company to tap into diverse markets, catering to a broad range of industries and minimizing risks tied to regional downturns.
- Strong Client Relationships: Hexaware has long-standing relationships with top clients in various sectors such as banking, healthcare and manufacturing. These strong partnerships enable the company to maintain a steady stream of revenue while continuously enhancing its service offerings.
- Commitment to Innovation: Hexaware invests heavily in research and development to stay ahead of technology trends. By focusing on automation, AI and digital services, the company can offer innovative solutions that meet the evolving demands of the marketplace.
- Solid Financial Performance: Hexaware has consistently reported solid financial results, driven by robust growth in its core services. The company’s strong financial position and ability to adapt to changing market conditions make it an attractive option for investors seeking long-term stability and growth.
The main disadvantage of Hexaware Technologies Ltd lies in its dependence on a few large clients. This reliance creates vulnerability, as any downturn or shift in the business of these clients can significantly affect the company’s revenue stream and stability.
- Client Concentration Risk: Hexaware has a high reliance on a limited number of large clients, making it susceptible to fluctuations in their demand. A loss of a key customer could lead to major revenue declines.
- Limited Service Diversification: While Hexaware focuses on IT services and consulting, it has limited diversification across other sectors. This can restrict its growth potential in emerging markets and reduce its ability to handle market fluctuations.
- Employee Attrition: High employee turnover in the IT services sector, including at Hexaware, can lead to knowledge loss and decreased productivity. Retaining skilled talent is essential for maintaining operational efficiency and client satisfaction.
- Global Economic Sensitivity: As an IT service provider, Hexaware is vulnerable to global economic conditions. A downturn in client economies, especially in key markets like the US and Europe, can lead to reduced spending on IT services.
- Intense Competition: Hexaware faces stiff competition from global IT service giants and emerging players. The need to innovate constantly and offer competitive pricing is crucial for maintaining market share and profitability in this highly competitive industry.
How to Invest in Hexaware Technologies and HCL Technologies Stocks?
If you’re interested in investing in Hexaware Technologies and HCL Technologies Stocks, you can do so effortlessly through Alice Blue, which offers zero brokerage on equity delivery trades, allowing you to purchase stocks without any additional charges.
Step 1: Open a Demat & Trading Account
- Visit the Alice Blue website.
- Click on “Open Demat Account” and complete the registration process.
- Upload your PAN, Aadhaar and bank details for verification.
Step 2: Fund Your Trading Account
- Log in to Alice Blue and navigate to the Funds section.
- Deposit money using UPI, Net Banking, or NEFT/RTGS for seamless transactions.
Step 3: Search & Analyze Hexaware Technologies and HCL Technologies Stocks
- Use the search bar to find Hexaware Technologies and HCL Technologies Stocks.
- Review the stock’s market price, charts and company insights before making a decision.
Step 4: Place Your Buy Order
- Click “Buy” and select either a Market Order (instant purchase) or a Limit Order (buy at a specified price).
- Enter the quantity and confirm your order to complete the purchase.
HCL Technologies vs. Hexaware Technologies – Conclusion
HCL Technologies is a leading global IT services company, known for its strong presence across multiple sectors, extensive service offerings and solid client base. Its focus on digital transformation and innovation helps it stay competitive and resilient, making it a reliable player in the global technology market.
Hexaware Technologies is a mid-sized IT services firm specializing in automation and digital transformation. With a strong emphasis on customer satisfaction, it has carved out a niche in niche markets. However, its client concentration and limited service diversification may pose risks to its long-term growth.
HCL Technologies vs. Hexaware Technologies – FAQ
What is HCL Technologies Ltd?
HCL Technologies Ltd, now known as HCLTech, is an Indian multinational IT consulting company headquartered in Noida, India. Established in 1991, it offers services such as software development, IT infrastructure management and business process outsourcing. The company operates in 60 countries and employs over 227,000 people.
What is Hexaware Technologies Ltd?
Hexaware Technologies Ltd, established in 1990 and headquartered in Mumbai, India, is a global provider of IT and business process services. The company offers a range of services, including application transformation, enterprise solutions, business intelligence, cloud acceleration, digital IT operations, business process services and proprietary platforms.
What are Software & IT Services Stocks?
Software and IT services stocks represent shares in companies that develop software products or provide information technology services. These companies offer solutions such as software development, cloud computing and IT consulting, catering to various industries’ technological needs.
Who is the CEO of HCL Technologies?
C Vijayakumar is the Chief Executive Officer (CEO) and Managing Director of HCL Technologies, a global IT services company. He joined HCLTech in 1994 and was appointed CEO in October 2016.
Who are the main competitors of HCL Technologies and Hexaware Technologies?
HCL Technologies and Hexaware Technologies face competition from several prominent IT services firms, including Wipro, Tech Mahindra, Infosys, Cognizant and Accenture. Additionally, Hexaware competes with companies like Coforge, Mphasis and Mindtree.
What Is The Net Worth Of Hexaware Technologies Ltd Vs HCL Technologies?
As of April 14, 2025, HCL Technologies Limited has a market capitalization of $43.52 billion, while Hexaware Technologies was acquired by The Carlyle Group on January 27, 2023, with a market capitalization of $1.74 billion at that time.
What Are The Key Growth Areas For HCL Technologies?
HCL Technologies is focusing on expanding its presence in North Asia, Central America, Eastern Europe and Africa, aiming to capitalize on emerging markets. The company is also investing in cloud computing, artificial intelligence and digital transformation services to drive growth.
What Are The Key Growth Areas For Hexaware Technologies Ltd?
Hexaware Technologies Ltd is focusing on expanding its AI-led service offerings, enhancing automation capabilities and strengthening strategic partnerships to drive growth. The company is also diversifying its client base and optimizing cost structures to improve operational efficiency.
Which Company Offers Better Dividends, HCL Technologies Or Hexaware Technologies?
HCL Technologies Ltd offers a higher dividend yield compared to Hexaware Technologies Ltd. HCL Technologies has declared ₹60 per share over the past 12 months, resulting in a yield of approximately 4.21% . In contrast, Hexaware Technologies declared a dividend of ₹5.75 per share for FY 2025 . This indicates that HCL Technologies provides more substantial returns to its shareholders in terms of dividends.
Which Stock Is Better For Long-term Investors, HCL Technologies Or Hexaware Technologies?
HCL Technologies has demonstrated consistent growth, reporting a 6.5% increase in revenue and a 6.2% rise in net profit in Q3 FY24, driven by strong performance in telecom and Engineering and R&D sectors. Hexaware Technologies, after its relisting in February 2025, aims to expand its revenue to $3 billion, focusing on India and the Middle East markets. Both companies have strong financials and growth strategies, but HCL’s established market presence and consistent performance may offer more stability for long-term investors.
Which Sectors Contribute Most To HCL And Hexaware Technologies Ltd’s Revenue?
HCL Technologies Ltd’s revenue is primarily driven by its Information Technology and Business Services segment, which contributed approximately ₹811.48 billion in the last fiscal year. Hexaware Technologies Ltd’s revenue is mainly generated from its Healthcare and Insurance sector, with revenues reaching ₹22.52 billion in the latest fiscal year.
Which Stocks Are More Profitable, HCL Technologies Or Hexaware Technologies Ltd?
HCL Technologies Ltd has demonstrated consistent profitability, with a net profit of ₹4,594 crore as of December 2024, reflecting a compound annual growth rate (CAGR) of 16.23% over seven quarters. In contrast, Hexaware Technologies Ltd reported a net profit of ₹318.90 crore in the December 2024 quarter, marking a 65.40% increase from the previous quarter. While Hexaware’s recent growth is notable, HCL Technologies has maintained a higher overall profit level over the same period.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change over time. The securities quoted are exemplary and are not recommended.
Blog by Aliceblue News Desk
The Alice Blue Team is a passionate group of analysts delivering expert market insights, comprehensive coverage of stocks, economy, commodities, and personal finance through clear, actionable research.
