HCL Infosystems (HCL-INSYS)

Turnaround

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Current Price₹11.33
Market Cap₹372.99 Cr
P/E Ratio0
ROCE-35.14%
ROE8.52%
Dividend Yield0%
Profit Growth-44.38%
Debt/Equity
Sales Growth-40.5%
Promoter Holding62.89%
52-Week Range₹9.01 — ₹16.5
SectorIT - Hardware
Book Value₹-9.01

Strengths

Concerns

AI Analysis

Let me apply the same tests I would to any Indian business. First, I need to understand the moat. HCL Infosystems operates in computer hardware and equipment, a sector where pricing power is hard to build. The numbers confirm this: sales fell by 25.96% and profit growth declined by 44.38%. The latest quarter shows just ₹4 Cr of sales and a ₹10 Cr net loss. That is not a business; it is a cash-burning operation. Book value is negative at -₹9.29 per share. When equity is wiped out, there is no asset cushion for me. P/E of 0.00 and P/B of N/A are not oversights; they are red flags. ROCE of -35.14% tells me every rupee deployed in the business is being destroyed. The reported ROE of 8.52% is misleading because it is calculated on negative equity. At ₹12.70, the market is asking ₹427 Cr for this shrinking, loss-making company. No dividend, no earnings growth, and a Piotroski F-Score of 2/9. Promoter holding is high at 62.89%, which is good, but ownership alone cannot fix negative book value or losses. Graham would call this a cigar butt, and even the last puff is not visible here. There is no moat, no earnings power, and no margin of safety. For a retail investor, this is not a value investment; it is a speculative bet on a turnaround. I learned long ago that most turnarounds don't turn. I will keep my capital elsewhere.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer