Hexaware Technologies Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for HEXAWARE, BSE:532129 Hexaware Technologies Ltd.

Hexaware Technologies Ltd.

30 Apr 2020

Hexaware Technologies

Hold: Hexaware Technologies Ltd.

Target

ICICI Securities Limited

Hexaware Technologies' (Hexaware) revenues declined 1.7% QoQ in dollar terms mainly led by Covid-19 (that impacted revenues by 2-3%). Revenue decline was mainly led by lower utilisation. EBIT margins declined ~160 bps mainly led by higher depreciation (Ind-AS impact) and 100-120 bps of Covid19 impact. PAT margin in the quarter was higher due to forex gains. The company had robust net new deal wins in the quarter of US$69 million....

Hexaware Technologies Ltd.

12 Feb 2020

Hexaware Technologies (4QCY19): In-line quarter, nearly bottomed-out. Maintain BUY

Buy: Hexaware Technologies Ltd.

Target

HDFC Securities

Hexaware's low-double digit organic growth trajectory is sustainable supported by (1) IMS/BPM-led differentiation and wins, (2) Cross-sell opportunities from Mobiquity (3 wins in 2HCY19), (3) Strengthening partner ecosystem (Guidewire, Pega, Adobe, AWS, Backbase), and (4) Increased focus to accelerate NN wins and lower client concentration risks (vs. earlier). The risk of intermittent volatility in large accounts is lower now (T10 lowered from 57% of rev to 43% over the past 3 yrs). Expect USD rev/EPS growth at 13.5/12.0% CAGR over CY19-21E. We maintain BUY on Hexaware post its in-line revenue performance. EPS cut (~4%) on margins reset (-60bps). IMS/BPM differentiation/growth leadership, Mobiquity downstream, increased focus on NN wins and strengthening partner ecosystem to support 13.5/12% rev/EPS CAGR. Our TP of Rs 430 is based on 16x Dec-21E EPS (3-5yr avg at 16.5x).

Hexaware Technologies Ltd.

12 Feb 2020

Hexaware Technologies

Hold: Hexaware Technologies Ltd.

Target

ICICI Securities Limited

Hexaware reported 1.8% sequential revenue growth to US$214.3 million, mainly driven by volume growth. However, it was impacted by higher than anticipated furloughs and ramp down impact in a client. The impact from client ramp down coupled with weak Q1 seasonality is expected to drive substantial growth only from Q2. Going ahead, with the bottoming out of some client specific issues, improving underlying health of business and revenues from Mobiquity acquisition, the management has guided for dollar revenue growth in the range of 15-17% for CY20 with organic growth being...

Hexaware Technologies Ltd.

11 Feb 2020, 12:00AM

Hexaware Technologies (BUY): Client-specific challenges receding; upgrade to BUY

Buy: Hexaware Technologies Ltd.

Recommendation Target

BOB Capital Markets Ltd.

An above-expected furlough impact and challenges at a large secondary-mortgage client marred revenue performance in Q4CY19.

Hexaware Technologies Ltd.

24 Oct 2019

Hexaware Technologies (3QCY19): Steady state. Maintain BUY

Buy: Hexaware Technologies Ltd.

HDFC Securities

Hexaware's low-double digit' organic growth trajectory is sustainable supported by (1) IMS/BPM and ADM service-lines, (2) Cross-sell opportunities from Mobiquity and (3) Strengthening Guidewire, Pega and Adobe partnership. While concerns around BFS (large account) persist, improved offerings in the vertical (Backbase, AWS) will support growth. We build USD rev/EPS of 15/13% CAGR over CY18-21E factoring USD rev growth at 17.1/15.7/12.1% and EBITDA% at 15.1/15.3/15.6% for CY19/20/21E, respectively. Key risks include escalation in client specific challenges (BFS) and low NN wins. We maintain BUY on Hexaware post its better operating performance (vs. est) in 3Q. Revenue cut (~3%) factoring slower organic growth (Mobiquity to support growth) is offset by margin increase. Our TP of Rs 445, valued at 16x Sep-21E EPS.

Hexaware Technologies Ltd.

24 Oct 2019

Q3CY19 Result Update

Hold: Hexaware Technologies Ltd.

Target

Prabhudas Lilladhar

Hexaware 3QCY19 reported 12.3% QoQ CC & company did not provide organic growth composition. We estimate organic growth to be at 4% QoQ CC which below our estimates of 6.5% QoQ CC. Mobiquity acquisition contributed 7.8% or US$14.5 mn to incremental revenues. EBIT margin came 13.9% (-76bps QoQ, -156bps YoY) Q3 margin was impacted by partial impact of wage increases (full impact in Q4) offset by lack of visa costs and INR depreciation. Management highlighted that supply side constraints in US has worsened now & now it can lead to higher wage hikes as compared to last...

Hexaware Technologies Ltd.

24 Oct 2019

Acquisition-driven revenue growth; organic growth moderates due to client-specific issue

Neutral: Hexaware Technologies Ltd.

Target

Motilal Oswal

24 October 2019 HEXWs 3QCY19 CC revenue grew 12.3% QoQ (in line). GPM expanded 140bp QoQ to 33.8% (170bp beat), led by superior billing rates at Mobiquity. EBIT margin of 13.9% was in line with our estimate. PBT increased 4.5% YoY to INR2,223m, while PAT was up 9.2% QoQ to INR1,512m (in-line). Higher-than-expected depreciation during the quarter was offset by a lower ETR (18% v/s estimate of 20%). In last six months of FY20, revenue/EBIT/PAT grew by 19%/10%/3% YoY respectively. Mobiquity contributed USD21m in the quarter (of which incremental revenue was ~USD18m). Strong growth was partially offset by weakness at one of the top-3 clients (growth impact of -2%). Barring this account, revenue growth would have been stronger at 13.4% QoQ (CC).

Hexaware Technologies Ltd.

24 Oct 2019

Hexaware Technologies (ADD): In-line operating show; near-term outlook cloudy

Hexaware Technologies Ltd.

BOB Capital Markets Ltd.

Hexaware (HEXW) reported in-line dollar revenue growth of 11.7% QoQ and EBIT margins of 13.9% in Q3CY19.

Hexaware Technologies Ltd.

25 Sep 2019

Hexaware Technologies

Hold: Hexaware Technologies Ltd.

ICICI Securities Limited

Hexaware Technologies Ltd.

23 Sep 2019

Delivering change for sustained outperformance

Neutral: Hexaware Technologies Ltd.

Target

Motilal Oswal

Mobiquity has front-end domain expertise with offerings around strategy and experience design, while HEXW is strong in engineering and execution. This is creating ample opportunities for both the entities to pitch full stack experience to their respective client groups. Mobiquity has strong vendor and client relationships with AWS and Backbase, which is creating opportunities for HEXW in IMS and retail banking, respectively. BFS vertical (40% of total revenues) is highly skewed toward capital markets. Macro uncertainty and lower spends by capital market firms on digital (as well as cut down on legacy IT) have led to softer growth in 1HCY19 (3.8% YoY). HEXW has been impacted by changed priorities in one of the largest clients in the vertical. That said, HEXW has identified the following trends which will drive growth in operational transformation in capital markets, [3] focus on retail banking by strengthening partnership with Backbase, [4] digitization in corporate banking space and [5] enterprise data management & data governance.

Is Hexaware Technologies Ltd. worth buying?

152 Votes:

Buy 75.66%

Sell 15.13%

Hold 9.21%

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