Why is the HCL Tech Share Price Falling?

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The recent HCL Tech share price is ₹1,597.90, reflecting a decrease in trading below key moving averages and a year-to-date decline of 16.45%. In the broader market context, HCL Tech short-term performance has been weaker compared to the Sensex, which has risen by 4.10% over the past month. The share price increase may be attributed to rising investor participation, as evidenced by a 14.78% increase in delivery volume. On the last trading day, the stock fluctuated between ₹1,595.10 and a day high of ₹1,618.90. Volume fell by 790 thousand shares from the previous day; 144 thousand shares were bought and sold for approximately ₹232.41 million. Despite this positive movement, the stock is trading below its 5-, 20-, 50-, 100-, and 200-day moving averages. 

Over the past week, HCL Tech has fallen 0.60%, and over the past month, it has decreased by 7.10%. The company has demonstrated strong long-term fundamentals, with a 23.00% CAGR in operating profits and consistent positive results over the last five quarters, which likely contributed to the recent price increase. Despite this, the company maintains a strong average Return on Equity (ROE) of 23.83% and healthy growth rates in net sales and operating profit.

Key Reasons for the Fall in the HCL Tech Share Price? 

There are several reasons behind the HCL Tech share price fall, including the tax on foreign remote workers, the slowdown in earnings & client spending, market factors, the fall in Q2 results, and weak financial results. 

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• Tax on Foreign Remote Workers: The US has already imposed high tariffs on exports from India. There are unconfirmed reports that it is now considering taxes on its IT services and tech workers. These reports point out that there could be a tax on foreign remote workers, which could slow the system of programs. 
• Slowdown in Earnings and Client Spending: Leading Indian IT companies like HCL Tech, TCS, Infosys, etc., have reported weak revenue growth and a slowdown in earnings in recent quarters, with several large IT firms showing declines quarter-on-quarter and year-on-year due to a rise in client demand. 
• Market Factors: The stock’s performance is also influenced by broader market trends, and HCL Tech has underperformed the benchmark Sensex year to date, while its long-term fundamentals remain strong. 
• Fall in Q2 results: HCL Tech, the third-largest IT services company by market value, posted a 10% year-on-year decline in consolidated net profit for the first quarter. The profit came in at ₹3,843 crores compared with ₹4,257 crores in the same period last year. This was also below analysts’ expectations.
• Weak financial performance: HCL Tech’s quarterly results show lower-than-expected profits and only marginal revenue growth, raising concerns about the company’s short-term growth prospects. 

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HCL Tech: An Overview

HCL Technologies Limited is an Indian multinational information technology (IT) consulting company. The company has offices in 60 countries and over 2,20,000 employees, and it is the third-largest India-headquartered IT services company by revenue and market capitalisation. HCL Tech is the flagship company of the HCL Group. Another HCL Group Company, HCL Infosystems, was formed in 1976 to produce calculators. They work with the clients across all major verticals, providing industry solutions for Financial Services, Manufacturing, Life Sciences and Healthcare, High Tech, Semiconductor, and other public services. 

The total revenue of HCL Tech is approximately ₹119,540 crores, with operating income of ₹23,261 crores and net income of ₹18,104 crores. HCL Tech signed a $2.1 billion managed network services deal with Verizon Business. In May 2024, HCL Tech announced the acquisition of select assets of Communications Technology Group. HCL Tech began as the R&D Division of HCLTech Enterprise, a company that contributed to the development and growth of the IT and computer industry in India.  

HCL Tech: Performance Analysis

The HCL Tech share price is approximately ₹1,600.00, with strong long-term fundamentals, an average return on Equity (ROE) of 22.67%, and healthy long-term growth, as Net Sales have grown at an annual rate of 10.85%. The company has a low Debt to Equity ratio (avg) at 0 times. Over the past year, while the stock has generated a return of -15.44% and its profit has risen by 0.9%, the company’s PEG ratio is 25.8.HCL share price target is around ₹2,079, and the average share price target is around ₹1,672.9. The P/B ratio for HCL Tech is 6.25; the P/E ratio for this sector is 25.67. The HCL Tech has an Earnings Per Share (EPS) of 62.58. If HCL Technologies Limited takes out the full calculated possible swing range, there will be an estimated 2.02% move between the lowest and the highest trading price during the day. 

HCL Tech: Share Price Target 

HCL Tech’s share price target for the coming year is ₹ 1,684.92. The consensus estimate represents an upside of 5.31% from the last price of 1600. According to the Wall Street analysts, the average 1-year price target for HCLTech is ₹1,672.9 with a low forecast of ₹1,394.81 and a high forecast of ₹2,079. HCL Tech’s recent movement predictions and projections. The price is below an essential level of ₹2,021 on the charts, and if it remains below this level, the stock might show a short-term decline. The HCL Tech share price target for 2026 is ₹1,643.20 with the minimum estimate of ₹1,381 and a maximum estimate of ₹1,980.00.  

Note: For live HCL Tech Share Price Target, visit the univest app and check the stock fundamentals.    

Is HCL Tech a Good Stock to Buy?

Several short-term signals, along with a good trend, are positive, and the current level may offer a buying opportunity, as there is a fair chance that HCL Technologies Limited’s stock will perform well in the short term. Since the stock is closer to the support from accumulated volume at ₹1,608.30 (0.35%) than to the resistance at ₹1,663.00 (3.04%), our systems see the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches the first resistance. Volume fell during the last trading day despite rising prices. This divergence between volume and cost may be an early warning. Some negative signals were issued as well, and they may influence the near-term development. 

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HCL Tech: Future Predictions By Analysts 

HCL’s decline partly offset gains from other sectors, affecting the overall index performance in the early hours. The Nifty 50 opened in green, rising ~0.23% to 25,138 early in the day. By 2030, HCL Tech wants to dominate IT services and new technologies worldwide. Continued innovation and innovative alliances might boost growth. Adaptability to market and technology developments will be key for the organisation. In 2030, its share price target would be ₹6,529. HCL Tech is forecast to grow earnings by approximately 8.3% per year and revenue by 6.4% annually, with an earnings per share (EPS) growth of 8.1%. Return on equity is forecast at around 28.8% over the next 3 years, and some financial analysts may foresee a decline in operating margins. 

HCL Tech: Analysts’ Rating

• The average 12-month price target is ₹1,684.90, and the consensus rating is Hold (mix of Buy, Hold, & Sell). 
• The analyst’s target range is between a high of ₹1,700.70 and a low of ₹1,610.20. 
• According to some analysts, some concerns remain with a ‘Reduce’ call of ₹1,610.20. 
• The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

What is the Right Time to Buy HCL Tech’s Shares? 

According to analysts, HCL Tech’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in HCL Tech. There are some factors to consider before investing in HCL Tech Company shares.

• Strong Fundamentals: Investors should review HCL Tech Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Technical Sector: The company is well-positioned in the electronic demat sector to deliver benefits to HCL Tech. This dominant sector increases demand and prices for HCL Tech.
• Highly Volatile: Prices are highly volatile, leading to significant price changes that have a substantial impact on HCL Tech Company’s stock price. Investors must review the market structure before investing in HCL Tech Company shares.

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Conclusion

If no tariffs are levied, we might see a fall in IT stocks. HCL Tech’s EBIT margins expanded to 19.5% sequentially. Although this crossed the company’s guidance band, HCL Tech retained its full-year EBIT margin guidance at 18-19%. The company has made minor changes to its FY26 guidance but stressed that AI will play an increasingly important role in shaping its services and offerings going forward.  Investors should review HCL Tech Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it. HCL Tech is forecast to grow earnings by approximately 8.3% per year and revenue by 6.4% annually, with an earnings per share (EPS) growth of 8.1%.

FAQs

What are the key reasons for the decline in the share price of HCL Tech?

Ans. There are several reasons behind the HCL Tech share price fall, including tax on Foreign Remote Workers, slowdown in Earnings & Client Spending, Market Factors, Fall in Q2 results, and weak financial results. HCL Tech, the third-largest IT services company by market value, posted a 10% year-on-year decline in consolidated net profit for the first quarter.  Leading Indian IT companies like HCL Tech, TCS, Infosys, etc., have reported weak revenue growth and earnings slowdown in recent quarters. 

What are the factors that investors must consider before investing in the HCL Tech shares?

Ans. According to analysts, HCL Tech’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in HCL Tech. There are some factors to consider before investing in HCL Tech Company shares. Some of these factors are financing partnerships, volatility, growth in the technical sector, and many more. 

What is the HCL Tech Share price target?

Ans. HCL Tech’s share price target for the coming year is ₹ 1,684.92. The consensus estimate represents an upside of 5.31% from the last price of 1600. According to the Wall Street analysts, the average 1-year price target for HCLTech is ₹1,672.9 with a low forecast of ₹1,394.81 and a high forecast of ₹2,079. HCL Tech’s recent movement predictions and projections.

What are the future predictions of HCL Tech’s share? 

Ans. HCL’s decline partly offset gains from other sectors, affecting the overall index performance in the early hours. The Nifty 50 opened in green, rising ~0.23% to 25,138 early in the day. By 2030, HCL Tech wants to dominate IT services and new technologies worldwide. Continued innovation and innovative alliances might boost growth. Return on equity is forecast at around 28.8% over the next 3 years, and some financial analysts may foresee a decline in operating margins. 

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