HCL Infosystems (HCL-INSYS)
TurnaroundScore 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 Ratio | 0 |
| ROCE | -35.14% |
| ROE | 8.52% |
| Dividend Yield | 0% |
| Profit Growth | -44.38% |
| Debt/Equity | — |
| Sales Growth | -40.5% |
| Promoter Holding | 62.89% |
| 52-Week Range | ₹9.01 — ₹16.5 |
| Sector | IT - Hardware |
| Book Value | ₹-9.01 |
Strengths
- Promoter holding is high at 62.89%, so insiders have significant skin in the game.
- The company still has a listed market presence and a trading range, giving liquidity if an investor wants to exit.
- The small quarterly revenue base of ₹4 Cr could, in theory, be a starting point for restructuring if new business lines emerge.
Concerns
- Book value is negative at -₹9.29 per share; liabilities exceed assets and there is no equity cushion.
- Latest quarter shows a net loss of -₹10 Cr on just ₹4 Cr of sales, indicating extreme unprofitability.
- Sales growth is -25.96% and profit growth is -44.38%, so the business is shrinking rapidly.
- Piotroski F-Score of 2/9 and ROCE of -35.14% point to severe financial distress and capital destruction.
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