CMP: 427

HCL Technologies Limited provides software development and related engineering services. The Group's technologies utilize a variety of technologies, including Internet and e-commerce, networking, internet telephony, embedded software, ASIC/VLSI design and testing, satellite and wireless communications, and component based object technologies, including COM, DCOM and COBRA.

HCL Technologies is a decent bet in large-cap IT space. Its currently trading at a P/E of 21 with good dividend yields of close to 2% in the last 12 months. It runs at a debt of 1030 Crores with 168 Crores cash in hand. Revenues have risen from 3769 Crores to 6795 Crores in the last 5 years. Profits have risen from 1102 Crores to 1198 Crores in the last 5 years. NPM has dipped badly from 29% to less than 18% over 5 years on competition and economic fall. The company has shown only 20% growth in the last 5 years. But Q3 FY2012 has shown over 40% growth which is totally out of the blue. FY 2012 has been good so far for HCL and this could be a breakout in profit growth for HCL.