POSITIONAL TRADING: HCL TECHNOLOGIES SHARE PRICE

The stock for today is HCL technologies limited.

Now, let us discuss the business aspect of HCL technologies share.

BUSINESS ANALYSIS    

HCL technologies is an Indian multinational information technology (IT) services and consulting company.

Its headquarters is in Noida, Uttar Pradesh, India.

HCL technology is a subsidiary of HCL enterprises.

HCL technology has offices in 50 countries including United Kingdom, United States, France and Germany with a worldwide network of R&D , Innovation labs and delivery centers.

The company has over 1,68,000 employees and its customers including 250 of the fortune 500 and 650 of the global 2000 companies.

HCL technology operates across sectors including aerospace and defense, automotive, banking, capital markets, chemical and process industries, energy and utilities, health care, hi-tech, Life sciences, media and entertainment, transportation etc.

HCL technologies is on the Forbes global 2000 list and among the top 20 largest publicly traded companies in India.

HCL technologies is one of the four companies under HCL corporation and the second company being HCL Infosystem.

HCL technologies launched HCL healthcare in February 2014.

HCL technologies began as the R&D division of HCL enterprise, a company which was a contributor to the development and growth of the IT and computer industry in India.

HCL technologies was originally incorporated as HCL overseas limited and its name was changed to HCL consulting limited.

On 9^th June 2015, PC Maker Dell announced a strategic distribution partnership with HCL Infosystem.

Trans Grid signed a 5 year managed services deal with HCL technologies and HCL Tech signed a 7 year exclusive partnership with Temenos.

Now, coming to the Financials of HCL Technologies limited.

FINANCIAL ANALYSIS

The Market Capitalization of HCL Technology is Rs 2,82,113Cr.

The price to earnings ratio of the HCL technology share is 24.7 which is slightly lesser than the industry price to earnings ratio of 32.3. 

The value of P/ E ratio is lesser that shows a brilliant future and strong performance of the company.

The return on capital employed of the stock is 26.1% which shows the company will definitely increase their profits year by year.

The return on equity is 20.0% which is also pretty awesome as per the valuation of HCL Technologies share price.

HCL Technologies shares a debt to equity ratio of 0.11 which shows that the company is reducing its debt and utilizing it for its development process.

Company has been maintaining a healthy dividend of 21.50%.

Based on market capitalization, HCL technologies share stands tall at 1st position.

From the last 4 quarters (Sep 2020, Dec 2020, Mar 2021, Jun 2021) the sales of the HCL technologies have increased from Rs 18,594 Cr to Rs 20,068 Cr.

HCL technologies have increased its operating profit from last quarter (Mar 2021) to this quarter (Jun 2021) from Rs 4549 Cr to Rs 5062 Cr.

The earning per share of the company is Rs 11.81.

From the last 3 years (Mar 2019, Mar 2020 & Mar 2021) the net profit has increased from Rs 10,120 Cr to Rs 11,145 Cr.

The share capital of the company is Rs 543 Cr which has been the same from the last 2 years.

In the year 2021, the reserves have increased to Rs 59,370 Cr from Rs 50,724 Cr in the year 2020.

The net cash flow of the company is Rs 2696 Cr.

Promoters have a holding of 60.33% till June 2021. 

The Flls have a 23.22% holding. 

The Dlls have a 11.34% holding while only 5.09% is with the public. The government has a 0.02% holding.

The company is in safe hands and their growth is wonderful.

This is a brief overview of the financials of the HCL technologies Ltd which showcase the dominance in their respective market.

Now, let’s deep dive into the technical aspect of the HCL technologies share.

Technical analysis is one of the most critical factor of investing and trading. This analysis not only deals in technical chart patterns but also in technical indicators. The technical indicators like moving average and super trend are used to make an investors judgement more accurate.

CHART PATTERN ANALYSIS   

If we take a closer look on the chart in a daily time frame, there is a formation of reverse head and shoulder pattern.

HCL Technologies share price is about to give a breakout. The right shoulder is small as compared to the head and left shoulder which signals that there is a high chance of faster target accomplishment. As the financials are superb it is likely that the stock will rally in upward direction in a very short span.

For HCL technologies share price there is one target as stated in the above image.

The HCL technologies share price on 05^th August 2021 is Rs 1,039 which would definitely change in the upcoming future. 

MOVING AVERAGE 

For HCL technologies share price analysis, we are taking 9 days and 21 days moving average. 

The 9 days moving average is a bit away from the 21 days moving average which shows that the stock is in a bullish trend. 

The red line shows the 9 days moving average while blue line highlights shows the 21 days moving average.

SUPER TREND

Right now there is a buying signal in HCL Technologies shares, this is the right time to accumulate this share as it has superb financials.

DISCLAIMER:

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