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Today's prices ask more of Infosys than of HCL Technologies.
At current prices, buyers of HCL Technologies are assuming about 0% growth against 10% in its own record; for Infosys it is 0% against 8%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: HCL Technologies compounded at about 13% a year (FY2018–FY2026) and Infosys at about 12% (FY2019–FY2026).
- What to watch: services growth at HCL Technologies; large deal wins at Infosys.
| HCL Technologies | Infosys | |
|---|---|---|
| Price | ₹1,381 | ₹1,151 |
| Market cap | ₹3.75L Cr | ₹4.66L Cr |
| P/E | 20.5 | 15.2 |
| P/B | 4.99 | 5.02 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
Services, engineering — and software
HCL Technologies, founded by Shiv Nadar, is India's third-largest IT services company. Most of its revenue comes from IT and business services and from engineering and R&D services, which design products and software for manufacturers, telecom companies and technology firms.
What Infosys sells, and to whom
Infosys, founded in Pune in 1981 by N. R. Narayana Murthy and six co-founders and now based in Bengaluru, is India's second-largest IT services company. It runs digital transformation, cloud, data and AI programmes for large companies, mainly in North America and Europe, and owns Finacle, a core-banking platform used by banks worldwide.
02The records side by side
On revenue the two have grown at much the same pace: HCL Technologies compounded at about 13% a year (FY2018–FY2026) and Infosys at about 12% (FY2019–FY2026). By revenue, Infosys is about 1.4 times the size of HCL Technologies. HCL Technologies kept 12.8% of revenue as net profit in FY2026; Infosys kept 16.5% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: HCL Technologies · Infosys.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Services growthIT and business services are most of the revenue; their growth sets the base case.
- Engineering and R&DHCLTech is one of the strongest Indian firms in engineering services, which follows clients' product-development budgets.
- Large deal winsBig multi-year contracts give visibility, but they often start at lower margins.
- Operating marginWage increases and pricing pressure can push margins below the company's own target range.
05What could go wrong
- Client budget cutsDiscretionary IT and engineering projects are cut first when clients tighten budgets.
- Ageing softwareSome acquired products serve mature markets where revenue can shrink.
- Financial-services concentrationBanks are its largest client group, so a banking slowdown hits Infosys first.
- AI deflationAutomation could shrink the hours clients pay for faster than new AI work replaces them.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is HCL Technologies or Infosys better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, HCL Technologies trades at 20.5 times earnings and 4.99 times book value, and Infosys at 15.2 times earnings and 5.02 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between HCL Technologies and Infosys?
HCL Technologies, founded by Shiv Nadar, is India's third-largest IT services company. Infosys, founded in Pune in 1981 by N.
Are HCL Technologies and Infosys valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for HCL Technologies and Infosys?
Worked backwards from the share price, HCL Technologies needs about 0% growth and Infosys about 0% growth, against 10% and 8% in their own records.