Current Rating and Its Significance
On 04 Dec 2025, MarketsMOJO revised Hexaware Technologies Ltd’s rating from 'Hold' to 'Buy', reflecting a significant improvement in the company’s overall assessment. The Mojo Score increased by 15 points, moving from 57 to 72, signalling enhanced confidence in the stock’s potential. This 'Buy' rating indicates that the stock is expected to outperform the broader market over the medium term, making it an attractive option for investors seeking growth within the Computers - Software & Consulting sector.
Here’s How Hexaware Looks Today: A Comprehensive Overview
As of 25 December 2025, Hexaware Technologies Ltd presents a compelling investment case supported by strong fundamentals, positive financial trends, and favourable technical indicators. The company’s midcap status and sector positioning further add to its appeal in the current market environment.
Quality Assessment
The company’s quality grade is rated as excellent, underscoring robust operational performance and sound management practices. Hexaware maintains a low debt-to-equity ratio, averaging zero, which highlights a conservative capital structure and limited financial risk. This prudent approach to leverage enhances the company’s resilience against economic fluctuations and supports sustainable growth.
Valuation Considerations
Despite the positive outlook, the valuation grade is classified as expensive. This suggests that the stock currently trades at a premium relative to its earnings and sector peers. Investors should weigh this premium against the company’s growth prospects and quality metrics. The elevated valuation reflects market optimism about Hexaware’s future earnings potential but also warrants careful monitoring for any shifts in market sentiment.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Performance
The financial grade is rated positive, supported by consistent quarterly results and strong operational metrics. Hexaware has declared positive results for the last three consecutive quarters, with net sales reaching a quarterly high of ₹3,483.60 crores and PBDIT peaking at ₹601.30 crores. The operating profit margin relative to net sales also stands at a robust 17.26%, indicating efficient cost management and healthy profitability.
Stock returns as of 25 December 2025 show a mixed but generally encouraging trend. The stock gained 1.43% in the last trading day and recorded a 2.78% increase over the past month. Over three months, the stock appreciated by 6.24%, although it experienced a 10.50% decline over six months. These fluctuations reflect broader market dynamics but the recent upward momentum aligns with the positive rating.
Technical Outlook
The technical grade is described as mildly bullish, suggesting that the stock’s price action and chart patterns currently favour upward movement, albeit with some caution. This technical stance supports the 'Buy' rating by indicating that market sentiment and momentum are generally positive, which could facilitate further gains in the near term.
Shareholding and Market Position
Hexaware’s majority shareholders are promoters, which often signals strong insider confidence and alignment with shareholder interests. The company’s midcap market capitalisation places it in a dynamic segment of the market, where growth opportunities are balanced with manageable risk profiles.
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What This Rating Means for Investors
For investors, the 'Buy' rating on Hexaware Technologies Ltd signals a favourable risk-reward profile based on current data. The excellent quality grade and positive financial trends suggest that the company is well-positioned to deliver sustainable earnings growth. While the stock’s valuation is on the higher side, this premium is justified by strong fundamentals and improving technical signals.
Investors should consider this rating as an endorsement of Hexaware’s growth prospects within the competitive software and consulting sector. The mildly bullish technical outlook further supports the potential for capital appreciation in the near term. However, given the premium valuation, it is prudent to monitor market conditions and company performance regularly to ensure alignment with investment objectives.
Summary
In summary, Hexaware Technologies Ltd’s current 'Buy' rating by MarketsMOJO, updated on 04 Dec 2025, reflects a comprehensive evaluation of quality, valuation, financial trends, and technical factors as of 25 December 2025. The company’s strong operational metrics, positive earnings trajectory, and supportive technical indicators make it a compelling choice for investors seeking exposure to the IT software and consulting sector. While valuation remains a consideration, the overall outlook is constructive, suggesting that Hexaware is well-placed for future growth.
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