Synopsis:
Nuvama analysts initiated coverage of Hexaware Technologies with a ‘Buy’ rating and raised the target price to Rs. 950, citing strong growth prospects and improving fundamentals. The stock jumped over 4%.
An AI technology solutions provider is in the spotlight today, with its stock climbing more than 4 percent following the announcement that analysts have significantly raised their target prices for the stock.
With the market capitalization of Rs. 48,910.58 crore, the shares of Hexaware Technologies Ltd were trading at Rs. 803.80, up by 3.88 percent from its previous day’s close price of Rs. 773.80 per equity share. The stock has touched an intraday high of Rs. 807.35 in today’s trading session.
What’s the news?
Nuvama initiated coverage on Hexaware Technologies with a ‘Buy’ rating and a target price of Rs. 950, implying a 22.7 percent upside from previous close price of Rs. 773.80.
The brokerage highlighted Hexaware’s strong position with $1.4 billion revenue and 32,000 employees, enabling it to pursue large deals while maintaining growth potential. It expects the company to deliver an 11 percent USD revenue CAGR over the next three years.
It also stated that Hexaware has a diversified presence across traditional sectors like BFSI and manufacturing, as well as niche areas like professional services, hi-tech, travel, and healthcare, positioning it for both cyclical and growth opportunities.
The company has maintained robust EBITDA margins of 15–16%, with adjusted margins expected to rise to 17.4% by CY27, supported by stable cash flows (OCF/EBITDA ~84%). Further, Nuvama said the company looks more attractive for investment after the recent fall in its share price, as it has a wide business presence, a better mix of clients, and improving profit margins.
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About the Company
Hexaware Technologies Ltd is a global provider of digital and technology services, with a focus on AI-driven solutions to help customers with digital transformation and operations.
It provides AI-powered platforms and tools to help clients adapt, innovate, and optimise in an AI-first world. It has 32,410 employees in 28 countries, covering a wide range of geographies, cultures, and regulatory zones, and serves 31 Fortune 500 companies.
Financial Outlook
Hexaware Technologies Ltd posted revenue of Rs. 3,260.7 crore in Q2 CY2025, up 1.6 percent QoQ from Rs. 3,207.9 crore and up 11.1 percent YoY from Rs. 2,935.5 crore. Net profit surged 16.1 percent QoQ from Rs. 327.1 crore to Rs. 379.7 crore, and grew 38.3 percent YoY from Rs. 274.6 crore.
EBITA stood at Rs. 564.4 crore, rising 6.1 percent QoQ from Rs. 532.2 crore and 22.4 percent YoY from Rs. 460.7 crore. EBITDA margin improved to 17.3 percent in Q2 CY2025 from 15.7 percent a year ago.
At the moment, the company’s P/E ratio is 36.8x higher as compared to its industry P/E 30.2x, and its ROE and ROCE are 23.3 percent and 29.5 percent, respectively, showing companies financial performance, whereas the D/E ratio of the company stands at 0.10.
Written by Akshay Sanghavi
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