HCLTECH - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | HCLTECH | Market Cap | 3,55,926 Cr. | Current Price | 1,312 ₹ | High / Low | 1,780 ₹ |
| Stock P/E | 29.0 | Book Value | 115 ₹ | Dividend Yield | 4.12 % | ROCE | 43.1 % |
| ROE | 32.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,471 ₹ | DMA 200 | 1,556 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.57 % | PAT Qtr | 3,682 Cr. | PAT Prev Qtr | 2,657 Cr. |
| RSI | 30.8 | MACD | -53.8 | Volume | 17,48,431 | Avg Vol 1Wk | 25,56,575 |
| Low price | 1,276 ₹ | High price | 1,780 ₹ | PEG Ratio | 7.21 | Debt to equity | 0.03 |
| 52w Index | 7.16 % | Qtr Profit Var | 4.42 % | EPS | 42.6 ₹ | Industry PE | 20.8 |
📊 HCLTECH presents a mixed case for swing trading. The RSI at 30.8 indicates oversold conditions, which could trigger a short-term rebound. However, the MACD (-53.8) and price trading below both 50 DMA (₹1,471) and 200 DMA (₹1,556) reflect bearish momentum. Strong fundamentals like ROCE (43.1%) and ROE (32.6%) provide support, but valuation is stretched compared to industry peers.
💡 Optimal Entry Price: ₹1,280–₹1,300, near the recent low of ₹1,276.
📈 Exit Strategy (if already holding): Consider exiting around ₹1,470–₹1,500 (50 DMA resistance zone) unless momentum improves.
✅ Positive
- High ROCE (43.1%) and ROE (32.6%) indicate strong operational efficiency.
- Dividend yield of 4.12% enhances investor returns.
- Debt-to-equity ratio of 0.03 shows financial stability.
- Quarterly PAT growth from ₹2,657 Cr. to ₹3,682 Cr. reflects earnings strength.
⚠️ Limitation
- Stock P/E (29.0) exceeds industry P/E (20.8), making it relatively expensive.
- PEG ratio of 7.21 suggests weak growth relative to valuation.
- Bearish technical indicators (MACD, DMA trend) limit short-term upside.
📉 Company Negative News
- FII holdings declined (-0.43%), showing reduced foreign investor confidence.
- Stock trading below both 50 DMA and 200 DMA signals weakness.
📈 Company Positive News
- Strong quarterly profit growth (PAT up 38%).
- DII holdings increased (+0.57%), reflecting domestic institutional support.
🏭 Industry
- IT sector remains resilient but faces global demand uncertainty.
- Peers trade at lower valuations (Industry P/E 20.8), making HCLTECH relatively expensive.
🔎 Conclusion
HCLTECH is fundamentally strong but technically weak in the short term. It may be suitable for swing trading if entered near ₹1,280–₹1,300, with a target around ₹1,470–₹1,500. Caution is advised due to bearish momentum indicators, and traders should monitor volume and RSI recovery before committing heavily.