Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
HCL TechnologiesNSE:HCLTECH +1.39%83 Return-on-Tangible-Equity is 40.18% as of Jun. 2026, which is 4% below its 10-year median of 41.79. GuruFocus rates NSE:HCLTECH with a GF Score™ of 83/100 and a GF Value™ of ₹1,808.28 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,477 Software companies, HCL Technologies ranks better than 80.5% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. HCL Technologies's annualized net income for the quarter that ended in Jun. 2026 was ₹184,960 Mil. HCL Technologies's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹460,350 Mil. Therefore, HCL Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 40.18%.
The historical rank and industry rank for HCL Technologies's Return-on-Tangible-Equity or its related term are showing as below:
NSE:HCLTECH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 38.24 Med: 41.79 Max: 48.7
Current: 40.4
During the past 13 years, HCL Technologies's highest Return-on-Tangible-Equity was 48.70%. The lowest was 38.24%. And the median was 41.79%.
NSE:HCLTECH's Return-on-Tangible-Equity is ranked better than 80.5% of 2477
companies
in the Software industry
Industry Median: 8.83
vs NSE:HCLTECH: 40.40
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
HCL Technologies Return-on-Tangible-Equity Related Terms
HCL Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HCL Technologies's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, HCL Technologies's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, HCL Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HCL Technologies's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 40.18% mean?
HCL Technologies (NSE:HCLTECH) has a Return-on-Tangible-Equity of 40.18% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HCL Technologies and its competitors. This is near median its historical median of 41.79. Over the past decade, HCL Technologies' Return-on-Tangible-Equity has ranged from 38.24 to 48.70. According to the industry distribution chart, HCL Technologies ranks #483 out of 2477 companies in the Software industry, placing it in the top 19.5%.
Is HCL Technologies' Return-on-Tangible-Equity too high?
HCL Technologies' current Return-on-Tangible-Equity of 40.18% is near median its 10-year median of 41.79. Over the past 10 years, this metric has ranged from a low of 38.24 to a high of 48.70. The Software industry median Return-on-Tangible-Equity is 8.83. HCL Technologies' value of 40.18% is 355% above this industry median. Based on the distribution chart, HCL Technologies ranks #483 out of 2477 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, HCL Technologies has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HCL Technologies' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, HCL Technologies ranks #483 out of 2477 companies for Return-on-Tangible-Equity. This places HCL Technologies in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.83. HCL Technologies' value of 40.18% is 355% above this benchmark. Historically, HCL Technologies' own Return-on-Tangible-Equity has ranged from 38.24 to 48.70 over the past decade. While the company's 10-year median is 41.79 vs. the industry median of 8.83, HCL Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,477 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HCL Technologies's current Return-on-Tangible-Equity of 40.18% is 355% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HCL Technologies and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HCL Technologies's current Return-on-Tangible-Equity is 40.18%, which is near median its own 10-year median of 41.79. 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 ₹1,808.28, compared to a current price of ₹1,203.90 — trading 33.4% below its estimated fair value. The current Return-on-Tangible-Equity is 40.18%, which is near median its 10-year median of 41.79 and 355% above the Software industry median of 8.83. HCL Technologies' overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For HCL Technologies (NSE:HCLTECH), the current Return-on-Tangible-Equity is 40.18% as of Jun. 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 ₹1,203.90 is trading 33.4% below its estimated GF Value™ of ₹1,808.28.
GuruFocus considers HCL Technologies to be Significantly Undervalued.
Key valuation signals for NSE:HCLTECH:
Return-on-Tangible-Equity: 40.18% (near median its 10-year median of 41.79)
GF Value™: ₹1,808.28 vs. price of ₹1,203.90 (33.4% below fair value)
Industry Position: 355% above the Software median (#483 of 2477)
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.
83GF Score
Get the complete analysis for NSE:HCLTECH
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:HCLTECH has been successfully added to your 
