ScoreWhy is HCL Infosystems Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -42.80% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
2
The company has declared Negative results for the last 3 consecutive quarters
- PAT(Q) At Rs -13.74 cr has Fallen at -101.2% (vs previous 4Q average)
- DEBT-EQUITY RATIO(HY) Highest at -1.12 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 1.33 times
3
Stock is technically in a Mildly Bearish range
- The stocks MACD and KST technical factors are also Bearish
4
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -29.61%, its profits have fallen by -16.2%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -29.61% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is HCL Infosystems for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
HCL Infosystems
-26.79%
-0.75
39.49%
Sensex
-5.08%
-0.64
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-42.80%
EBIT Growth (5y)
12.06%
EBIT to Interest (avg)
-1.04
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.40
Sales to Capital Employed (avg)
0.41
Tax Ratio
5.53%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
37.91%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
23
Price to Book Value
-1.38
EV to EBIT
-8.87
EV to EBITDA
-8.92
EV to Capital Employed
-2.97
EV to Sales
24.46
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
NET SALES(Q)
At Rs 5.28 cr has Grown at 74.5% (vs previous 4Q average
-14What is not working for the Company
PAT(Q)
At Rs -13.74 cr has Fallen at -101.2% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at -1.12 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.33 times
INTEREST(Q)
Highest at Rs 4.64 cr
PBT LESS OI(Q)
Lowest at Rs -21.55 cr.
EPS(Q)
Lowest at Rs -0.40
Loading Valuation Snapshot...
Here's what is working for HCL Infosystems
Net Sales - Quarterly
At Rs 5.28 cr has Grown at 74.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 3.03 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for HCL Infosystems
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -21.55 cr has Fallen at -51.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -14.24 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -13.74 cr has Fallen at -101.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -6.83 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 4.64 cr has Grown at 463,999,900.00%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at -1.12 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest - Quarterly
Highest at Rs 4.64 cr
in the last five quarters and Increased by 463,999,900.00 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -21.55 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -0.40
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 1.33 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
