Profit

BSE Code: | NSE Code: | ISIN: | Sector:

NSE
449.10
Change Change %
-7.15 -1.57%

Updated:21 Sep, 2018, 14:49 PM IST

BSE
442.80
Change Change %
-13.40 -2.94%

Updated:21 Sep, 2018, 14:39 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Nomura
N/A
01-08-2017 Hold 259.40 260.00
N/A
Target Hit Long (1Y)
01-08-2018

Nomura maintains neutral on Hexaware Technologies

Hexaware Technologies outperformed 2Q growth expectations, and could be the fastestgrowing player in our IT coverage, with USD revenue/EPS CAGR of 12/10% over FY16-18F. Strength in IMS BPO (annuity segments which contributed 41% of incremental revenue over LTM) and BFSI (largest vertical for HEXW) are positive from longer-term growth sustainability perspective in our view.

However, investors should await better entry points given: 1) flattish revenue trends in 2H and impacts on FY18F growth due to insourcing at a top client and ramp-down at another top client and 2) the stock seems fairly valued at around 15.8x 1-yr fwd earnings (around 15% premium to historical average). We lift our TP to INR260. HEXW remains our relative preference in Tier 2 IT. HCLT (TP: INR1030, implied upside 15.35%) is our only Buy in the IT services sector.

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