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, digital process operations and digital transformation services powered by digital technologies, analytics, IoT, cloud and cybersecurity solutions. The ERS segment focuses on providing engineering services and solutions in software and platform engineering to support the entire product lifecycle in various industries.
Company Overview of Infosys Ltd
Infosys Limited is a company based in India that offers consulting, technology, outsourcing and digital services. Its business segments cover areas such as Financial Services, Retail, Communication, Energy, Utilities, Resources, Services, Manufacturing, Hi-Tech and Life Sciences.
The remaining segments encompass various businesses in India, Japan, China, Infosys Public Services and other public service enterprises. The company’s core services consist of application management, proprietary application development, validation solutions, product engineering and management, infrastructure management, enterprise application integration and support.
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 Infosys Ltd
The table below displays the month-by-month stock performance of Infosys Ltd for the past year.
| Month | Return (%) |
| Apr-2024 | -6.85 |
| May-2024 | -0.43 |
| Jun-2024 | 8.8 |
| Jul-2024 | 19.8 |
| Aug-2024 | 4.72 |
| Sep-2024 | -3.49 |
| Oct-2024 | -6.28 |
| Nov-2024 | 5.29 |
| Dec-2024 | 1.13 |
| Jan-2025 | 0.31 |
| Feb-2025 | -10.24 |
| Mar-2025 | -7.19 |
Fundamental Analysis of HCL Technologies Limited
HCL Technologies Ltd is a prominent global IT services company based in India, recognized for its innovative approach and commitment to delivering cutting-edge solutions. Established in 1976, HCL has grown into a major player in the technology sector, offering a wide range of services including software development, infrastructure management and consulting.
The stock is currently priced at ₹1380.00 with a market cap of ₹374,017.16 crores. It offers a dividend yield of 3.77%. Despite a 1Y return of -10.34%, the 5Y CAGR stands strong at 24.09%, with an average net profit margin 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 Infosys Limited
Infy, officially known as Infosys, is a global leader in technology services and consulting headquartered in Bangalore, India. Founded in 1981, the company provides end-to-end business solutions, including software development, maintenance and independent validation services.
The stock is priced at ₹1380.00 with a market cap of ₹374,017.16 crores and a dividend yield of 3.77%. Despite a 1-year return of -10.34% and a 6-month return of -23.70%, the 5-year CAGR is strong at 24.09%, with a 14.85% average net profit margin.
- Close Price ( ₹ ): 1403.70
- Market Cap ( Cr ): 581563.63
- Dividend Yield %: 3.27
- 1Y Return %: -6.84
- 6M Return %: -26.85
- 1M Return %: -16.65
- 5Y CAGR %: 17.15
- % Away From 52W High: 42.45
- 5Y Avg Net Profit Margin %: 17.42
Financial Comparison of HCL Technologies and Infosys Ltd
The table below shows a financial comparison of HCL Technologies Ltd and Infosys Ltd.
| Stock | HCLTECH | INFY | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 102814.0 | 111408.0 | 117760.00 | 149468.0 | 158381.0 | 165126.00 |
| EBITDA (₹ Cr) | 23986.0 | 25693.0 | 27591.00 | 37831.0 | 41136.0 | 43283.00 |
| PBIT (₹ Cr) | 19841.0 | 21520.0 | 23454.00 | 33606.0 | 36458.0 | 38608.00 |
| PBT (₹ Cr) | 19488.0 | 20967.0 | 22795.00 | 33322.0 | 35988.0 | 38184.00 |
| Net Income (₹ Cr) | 14851.0 | 15702.0 | 17069.00 | 24095.0 | 26233.0 | 27649.00 |
| EPS (₹) | 54.73 | 57.86 | 62.90 | 57.86 | 63.39 | 66.79 |
| DPS (₹) | 48.0 | 52.0 | 54.00 | 34.0 | 46.0 | 49.00 |
| Payout ratio (%) | 0.88 | 0.9 | 0.86 | 0.59 | 0.73 | 0.73 |
Points to be noted:
- (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): 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 Infosys Ltd
HCL and Infosys both provide consistent dividend payouts, with HCL offering ₹12 in January 2025 and Infosys offering ₹21 in October 2024. Both companies maintain solid interim and special dividend distributions, reflecting their strong financial positions. Check the table for complete details.
| HCL | Infosys Ltd | ||||||
| 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 | 17 October, 2024 | 29 October, 2024 | Interim | 21 |
| 14 January, 2025 | 17 January, 2025 | Special | 6 | 18 April, 2024 | 31 May, 2024 | Final | 20 |
| 17 September, 2024 | 22 October, 2024 | Interim | 12 | 19 April, 2024 | 31 May, 2024 | Special | 8 |
| 18 Jun, 2024 | 23 July, 2024 | Interim | 0 | 12 Oct, 2023 | 25 Oct, 2023 | Interim | 18 |
| 20 Mar, 2024 | 7 May, 2024 | Interim | 18 | 13 Apr, 2023 | 02 Jun, 2023 | Final | 17.5 |
| 15 Dec, 2023 | 19 January, 2024 | Interim | 12 | 13 October, 2022 | 27 Oct, 2022 | Interim | 16.5 |
| 15 Sep, 2023 | 20 October, 2023 | Interim | 12 | 13 April, 2022 | 31 May, 2022 | Final | 16 |
| 15 Jun, 2023 | 20 Jul, 2023 | Interim | 10 | 13 Oct, 2021 | 26 Oct, 2021 | Interim | 15 |
| 17 Mar, 2023 | 28 Apr, 2023 | Interim | 18 | 15 Apr, 2021 | 31 May, 2021 | Final | 15 |
Advantages and Disadvantages of Investing in HCL Technologies
HCL Technologies Ltd
The primary advantage of HCL Technologies Ltd lies in its robust global presence and diversified service offerings. Its expertise spans various industries, which allows the company to cater to different client needs, minimizing risks and maximizing growth opportunities.
- Strong Client Base: HCL Technologies has a broad and diverse client portfolio, including several Fortune 500 companies. This large, stable customer base helps the company maintain a steady revenue stream, even in challenging market conditions.
- Innovation in Technology: HCL is known for its strong focus on innovation, particularly in areas like cloud computing, AI and automation. This enables the company to stay competitive and deliver cutting-edge solutions to clients across various industries.
- Global Delivery Model: With delivery centers across the globe, HCL ensures that it can offer round-the-clock services to its clients. This global presence helps the company tap into new markets while maintaining efficiency and cost-effectiveness in operations.
- Employee-Centric Culture: HCL is known for its employee-friendly policies and emphasis on professional growth. The company invests heavily in training and development, fostering a positive work environment that helps retain skilled talent, leading to increased productivity.
- Sustainability Focus: HCL Technologies is committed to sustainability, integrating eco-friendly practices into its operations. The company has made significant strides in reducing its carbon footprint and continues to work toward creating a greener, more sustainable future.
The main disadvantage of HCL Technologies Ltd is its exposure to fluctuations in global economic conditions. Economic downturns in major markets like the US and Europe can lead to reduced spending on IT services, which could impact the company’s financial performance.
- Client Dependency: HCL Technologies depends on a few large clients for a significant portion of its revenue. Losing or reducing business with key customers can have a major negative impact on its earnings, posing a risk to growth.
- High Competition: The IT services industry is highly competitive, with several global players offering similar services. HCL faces pressure from both large, established companies and smaller, agile competitors, making it challenging to maintain market share.
- Currency Fluctuations: As a global business, HCL is vulnerable to currency exchange fluctuations, especially since a large portion of its revenue comes from foreign markets. Significant currency depreciation in key regions could negatively affect profits.
- Limited Diversification: Although HCL has diversified its service offerings, it is still heavily dependent on its core IT services. A lack of deeper diversification in emerging sectors may limit their ability to adapt to future technological shifts and market demands.
- Employee Turnover: Employee attrition in the IT industry, including at HCL, can disrupt operations and reduce productivity. The company needs to continually focus on employee retention to maintain its skilled workforce and ensure consistent service delivery.
Advantages and Disadvantages of Investing in Infosys Ltd
Infosys Ltd
The primary advantage of Infosys Ltd lies in its global presence and leadership in the IT services sector. The company has consistently delivered strong financial results, driven by its focus on innovation, digital transformation and strategic partnerships, positioning itself as a reliable market leader.
- Strong Market Position: Infosys is one of the top global IT service providers, with a robust portfolio that spans industries like finance, healthcare and manufacturing. Its vast client base ensures steady revenue streams and a strong reputation in the global market.
- Focus on Digital Transformation: Infosys has made significant investments in digital technologies, including AI, machine learning and cloud computing. This focus allows the company to provide innovative solutions, staying ahead of market trends and maintaining a competitive edge.
- Financial Stability: Infosys has consistently demonstrated strong financial growth with impressive profit margins. The company’s solid cash flow and high profitability enable it to invest in research, acquisitions and expansion, ensuring sustainable long-term growth.
- Employee Development and Retention: Infosys places high importance on employee growth, training and satisfaction. Its strong corporate culture helps retain top talent, contributing to the company’s continued innovation and excellence in service delivery, which enhances client satisfaction.
- Sustainability and Corporate Responsibility: Infosys is committed to sustainability, with several initiatives aimed at reducing its environmental impact. Its corporate social responsibility efforts, including education and community development, not only improve its public image but also help in attracting socially-conscious investors.
The main disadvantage of Infosys Ltd is its exposure to intense competition in the IT services industry. Despite its global presence, the company faces constant pressure from both established players and emerging tech firms, which can impact market share and profit margins.
- Intense Industry Competition: Infosys competes with other large IT services firms, such as Accenture and TCS, as well as new entrants. This constant competition drives the need for continuous innovation, price adjustments and increased marketing efforts to stay relevant.
- Dependence on Global Economic Conditions: Being a global player, Infosys is vulnerable to fluctuations in the economies of its major markets, such as the US and Europe. Economic downturns or geopolitical tensions can negatively affect client budgets and demand for IT services.
- Client Concentration Risk: Although Infosys has a broad client base, it still depends on a few large clients for a substantial portion of its revenue. A shift in client needs or a loss of a key customer could significantly impact its revenue streams.
- Employee Attrition: The IT industry experiences high employee turnover and Infosys is no exception. Losing experienced employees can lead to knowledge gaps, reduced productivity and increased recruitment and training costs, all of which affect profitability.
- Slow Adaptation to Market Trends: While Infosys is focusing on digital transformation, it may not be moving as quickly as competitors. This slower pace of innovation in emerging technologies like AI and blockchain could hinder its ability to capture market share in future trends.
How to Invest in Infosys and HCL Technologies Stocks?
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HCL Technologies vs. Infosys – Conclusion
HCL Technologies excels in digital transformation, offering innovative solutions with strong financial stability and a global presence. Its focus on automation and AI positions it well for future growth, making it a strong contender for long-term investors seeking consistency and innovation.
Infosys stands out for its leadership in IT services, consistent financial performance and commitment to digital transformation. With a strong market position and focus on sustainability, it remains a reliable choice for investors looking for steady growth and competitive advantage in the IT sector.
HCL Technologies vs. Infosys – FAQ
HCL Technologies Ltd is a global IT services and consulting company based in India. It provides a range of services including software development, infrastructure management and business process outsourcing. Established in 1976, HCL is known for its innovation and is part of the larger HCL Group.
Infosys Ltd is a global leader in technology services and consulting, headquartered in India. Founded in 1981, it specializes in software development, IT services and business consulting. The company aims to drive digital transformation for clients across various industries, leveraging cutting-edge technologies and innovative solutions.
Software and IT services stocks refer to shares of companies that provide software development, IT consulting, system integration and other technology-related services. These companies typically offer solutions in areas like cloud computing, cybersecurity and enterprise software, making them key players in the digital transformation of businesses globally.
The CEO of HCL Technologies Ltd is C Vijayakumar, also known as CVK or Vijay. He has been leading the company since October 2016 and was appointed Managing Director in July 2021. Under his leadership, HCLTech has focused on leveraging technologies like AI, cloud and cybersecurity to drive growth and innovation.
The main competitors of HCL Technologies and Infosys include other global IT service giants such as Tata Consultancy Services (TCS), Wipro, Accenture, Cognizant and IBM. These companies also provide IT consulting, software development and digital transformation services, competing for market share in the global IT industry.
As of April 2025, Infosys Ltd has a market capitalization of approximately ₹5.93 trillion, while HCL Technologies Ltd stands at about ₹3.88 trillion. This indicates that Infosys holds a higher market value compared to HCL Technologies.
HCL Technologies is strategically focusing on several key growth areas to drive its future expansion. These include leveraging Generative AI (GenAI) to enhance automation and decision-making capabilities, advancing cloud-native solutions to support scalable and flexible IT infrastructures and strengthening cybersecurity services to address evolving digital threats.
Infosys Ltd is strategically focusing on several key growth areas to drive its future expansion. These include leveraging Generative AI (GenAI) to enhance automation and decision-making capabilities, advancing cloud-native solutions to support scalable and flexible IT infrastructures and strengthening cybersecurity services to address evolving digital threats.
As of April 2025, HCL Technologies Ltd offers a higher dividend yield compared to Infosys Ltd. HCL’s dividend yield stands at approximately 4.19%, with a recent payout of ₹18 per share in January 2025. In contrast, Infosys provides a dividend yield of around 3.47%, having declared ₹21 per share in October 2024. Therefore, HCL Technologies offers a more attractive dividend yield for income-focused investors.
As of April 2025, Infosys Ltd and HCL Technologies Ltd both present strong long-term investment opportunities, each with distinct strengths. Infosys boasts a robust financial position and operational efficiency, making it a stable choice for conservative investors. On the other hand, HCL Technologies demonstrates impressive revenue growth and a diversified portfolio, appealing to investors seeking higher growth potential.
In fiscal year 2024, Infosys Ltd earned the majority of its revenue from Financial Services, making up 27.4%, followed by Retail at 14.7%. HCL Technologies also saw 22% from Financial Services, with significant contributions from Manufacturing, Healthcare and Public Services. Both companies are prominent in Financial Services.
As of fiscal year 2024, Infosys Ltd demonstrates higher profitability compared to HCL Technologies Ltd, with a net profit margin of 21.12%, whereas HCL Technologies reports a net profit margin of 14.3%. These figures indicate that Infosys is more efficient in converting revenue into profit.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
