HCL Tech

Last week we had gone through HCL Tech results and we think they have really done a good job. The revenues have grown up 6.3% and 13.4% QoQ and YoY basis. The net income grew by 2.3% QoQ and 28% YoY.

We produced a white paper on HCL Tech last year in March and we were of the opinion that it was trading a bit at discount and good opportunity to invest with it. The business is looking strong compare to last year and the only thing that has changed is its dividend policy.

HCL Tech use to pay almost 25% of its earnings as dividends which they have changed to approximately 15% this year. It should be okay with investors as long as businesses are earning either same or more returns (ROE) on their retained earnings. If they fail to match this or miss out then we might see a sub-dude growth in its business intrinsic values for the year 2016.

We think that today HCL Tech is trading at fair values and there is no discount today available.

To read White Paper on it please click below.

HCL Tech – White paper March 2014