The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warning Sign:
Beneish M-Score -1.66 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for HCL Technologies's Beneish M-Score or its related term are showing as below:
NSE:HCLTECH'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.45 Med: -1.74 Max: -1.37
Current: -1.66
During the past 13 years, the highest Beneish M-Score of HCL Technologies was -1.37. The lowest was -2.45. And the median was -1.74.
HCL Technologies Beneish M-Score Related Terms
HCL Technologies Beneish M-Score Historical Data
* Premium members only.
The historical data trend for HCL Technologies's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:HCLTECH vs IBM, ACN, FISV: Beneish M-Score Comparison
For the Information Technology Services subindustry, HCL Technologies's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HCL Technologies Beneish M-Score vs Software Industry
For the Software industry and Technology sector, HCL Technologies's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where HCL Technologies's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of HCL Technologies for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0778
+
0.528 * 1.0153
+
0.404 * 0.9474
+
0.892 * 1.1118
+
0.115 * 1.0173
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1
+
4.679 * 0.143147
-
0.327 * 1.0347
=
-1.66
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(40840 / (40840 + 75900))
/
(43550 / (43550 + 83090))
=
0.349837
/
0.343888
=
1.0173
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(166420 - 0
-
0)
/
1162580
=
0.143147
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
HCL Technologies has a M-score of -1.66 signals that the company is likely to be a manipulator.
HCL Technologies (NSE:HCLTECH) has a Beneish M-Score of -1.66 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on HCL Technologies and its competitors. According to the industry distribution chart, HCL Technologies ranks #2181 out of 2634 companies in the Software industry, placing it in the top 82.8%.
Is HCL Technologies' Beneish M-Score too high?
HCL Technologies' current Beneish M-Score is -1.66. Based on the distribution chart, HCL Technologies ranks #2181 out of 2634 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, HCL Technologies has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HCL Technologies' Beneish M-Score compare to IBM and ACN?
According to the Software industry distribution chart, HCL Technologies ranks #2181 out of 2634 companies for Beneish M-Score. This places HCL Technologies in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on HCL Technologies and its competitors. HCL Technologies's current Beneish M-Score is -1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HCL Technologies stock overvalued right now?
Based on GuruFocus' analysis, HCL Technologies (NSE:HCLTECH) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,777.85, compared to a current price of ₹1,100.70 — trading 38.1% below its estimated fair value. The current Beneish M-Score is -1.66. HCL Technologies' overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For HCL Technologies (NSE:HCLTECH), the current Beneish M-Score is -1.66 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HCL Technologies (NSE:HCLTECH) Overvalued in 2026?
Based on GuruFocus' analysis, HCL Technologies stock appears to be undervalued.
The current stock price of ₹1,100.70 is trading 38.1% below its estimated GF Value™ of ₹1,777.85.
GuruFocus considers HCL Technologies to be Significantly Undervalued.
Key valuation signals for NSE:HCLTECH:
Beneish M-Score: -1.66
GF Value™: ₹1,777.85 vs. price of ₹1,100.70 (38.1% below fair value)
No single metric tells the full story. See the NSE:HCLTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HCL Technologies Ltd provides enterprises with IT solutions. It focuses on offering Digital, Internet of Things, Cloud, Automation, Cybersecurity, Infrastructure Management, and Engineering services to solve business problems for clients. It offers solutions to a variety of industries, including Financial Services, Public Services, Consumer Services, Healthcare, and Manufacturing. It operates in three segments: IT and Business Services, Engineering and R&D Services, and HCL Software. The firm emphasizes consultation services for firms, intending to offer them digital and design solutions. The majority of the firm's revenue comes from the IT and Business Services segment. Geographically, it derives maximum revenue from the USA, and the rest from Europe, India, and the Rest of the world.
82GF Score
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