HCLTECH - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | HCLTECH | Market Cap | 4,40,654 Cr. | Current Price | 1,622 ₹ | High / Low | 1,780 ₹ |
| Stock P/E | 35.9 | Book Value | 115 ₹ | Dividend Yield | 3.33 % | ROCE | 43.1 % |
| ROE | 32.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,653 ₹ | DMA 200 | 1,606 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.57 % | PAT Qtr | 3,682 Cr. | PAT Prev Qtr | 2,657 Cr. |
| RSI | 39.7 | MACD | 6.04 | Volume | 61,20,175 | Avg Vol 1Wk | 33,87,238 |
| Low price | 1,303 ₹ | High price | 1,780 ₹ | PEG Ratio | 8.93 | Debt to equity | 0.03 |
| 52w Index | 66.9 % | Qtr Profit Var | 4.42 % | EPS | 42.6 ₹ | Industry PE | 24.8 |
📊 Based on the given parameters, HCLTECH shows strong fundamentals but is currently trading at a relatively high valuation compared to industry averages. The RSI at 39.7 indicates the stock is approaching oversold territory, which may present a swing trade opportunity. The optimal entry price would be around ₹1,600–₹1,610, close to the 200 DMA support. If already holding, consider exiting near ₹1,720–₹1,740, just below the recent high resistance zone.
✅ Positive
- Strong ROCE (43.1%) and ROE (32.6%) indicate efficient capital usage.
- Low debt-to-equity ratio (0.03) shows financial stability.
- Dividend yield of 3.33% provides steady income.
- Quarterly PAT growth from ₹2,657 Cr. to ₹3,682 Cr. reflects improving profitability.
- High trading volume compared to weekly average suggests strong market interest.
⚠️ Limitation
- Stock P/E (35.9) is significantly higher than industry PE (24.8), indicating overvaluation.
- PEG ratio of 8.93 suggests limited growth relative to price.
- FII holding decreased (-0.43%), showing reduced foreign investor confidence.
📉 Company Negative News
- Decline in FII holdings could signal cautious sentiment among global investors.
- High valuation may limit upside potential in the short term.
📈 Company Positive News
- Strong quarterly profit growth and EPS of ₹42.6.
- Consistent dividend payout supports investor confidence.
- Stock trading near support levels, offering potential entry opportunity.
🏭 Industry
- IT sector remains resilient with steady demand for digital transformation services.
- Industry PE at 24.8 suggests peers are trading at more reasonable valuations.
- Global IT spending outlook remains positive, supporting medium-term growth.
🔎 Conclusion
HCLTECH is a fundamentally strong company with attractive returns and low debt. However, its high valuation compared to industry peers limits upside potential. For swing trading, entry near ₹1,600–₹1,610 is favorable, with an exit target around ₹1,720–₹1,740. Caution is advised due to overvaluation, but short-term momentum and strong fundamentals make it a reasonable candidate for swing trades.