Definitive Analysis
Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

HCL Technologies Limited (HCLTECH.BO)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$4,009.83 - $12,506.42$11,720.34
Multi-Stage$1,751.53 - $1,912.49$1,830.55
Blended Fair Value$6,775.45
Current Price$1,385.10
Upside389.17%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS64.31%21.15%59.9051.8847.9041.9812.005.004.056.2312.489.94
YoY Growth--15.47%8.30%14.10%249.79%139.94%23.48%-35.01%-50.06%25.54%13.08%
Dividend Yield--3.47%3.53%4.03%4.31%1.22%0.90%0.77%1.35%2.93%2.72%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)170,588.63
(-) Cash Dividends Paid (M)162,768.13
(=) Cash Retained (M)7,820.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)34,117.7321,323.5812,794.15
Cash Retained (M)7,820.507,820.507,820.50
(-) Cash Required (M)-34,117.73-21,323.58-12,794.15
(=) Excess Retained (M)-26,297.23-13,503.08-4,973.65
(/) Shares Outstanding (M)2,712.672,712.672,712.67
(=) Excess Retained per Share-9.69-4.98-1.83
LTM Dividend per Share60.0060.0060.00
(+) Excess Retained per Share-9.69-4.98-1.83
(=) Adjusted Dividend50.3155.0358.17
WACC / Discount Rate6.82%6.82%6.82%
Growth Rate5.50%6.50%7.50%
Fair Value$4,009.83$11,720.34$12,506.42
Upside / Downside189.50%746.17%802.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)170,588.63181,676.89193,485.89206,062.47219,456.53233,721.21240,732.84
Payout Ratio95.42%94.33%93.25%92.17%91.08%90.00%92.50%
Projected Dividends (M)162,768.13171,380.29180,424.33189,920.02199,887.85210,349.09222,677.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.82%6.82%6.82%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)158,926.52160,432.93161,939.34
Year 2 PV (M)155,155.11158,110.38161,093.53
Year 3 PV (M)151,452.77155,800.44160,230.52
Year 4 PV (M)147,818.36153,503.03159,350.12
Year 5 PV (M)144,250.76151,218.12158,452.15
PV of Terminal Value (M)3,993,723.494,186,621.834,386,902.84
Equity Value (M)4,751,327.014,965,686.745,187,968.50
Shares Outstanding (M)2,712.672,712.672,712.67
Fair Value$1,751.53$1,830.55$1,912.49
Upside / Downside26.46%32.16%38.08%

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