Hexaware Technologies Falls 9.18% Amidst 52-Week Lows and Elevated Promoter Pledging

23 February 2026: Stock Hits 52-Week Low Amid Market Pressure

Hexaware Technologies Ltd’s share price declined sharply to Rs.503.70, down 3.41% on the day, marking a fresh 52-week low of Rs.511.5 intraday. This drop occurred despite the Sensex gaining 0.39%, highlighting the stock’s divergence from broader market strength. The decline was driven by a combination of subdued quarterly profitability and increased promoter share pledging, with 100% of promoter shares pledged, doubling over the last quarter. The company’s PBDIT for the December 2025 quarter was Rs.377.90 crore, the lowest in recent periods, with operating profit margins contracting to 10.86%. Despite these pressures, Hexaware’s return on equity remained robust at 23.3%, and the company maintained a debt-free capital structure.

Mojo Score Upgrade Reflects Improved Valuation Despite Weakness

On the same day, MarketsMOJO upgraded Hexaware’s rating from Sell to Hold, citing improved valuation metrics. The price-to-earnings ratio stood at 21.70, and the price-to-book ratio was 5.05, both more attractive compared to peers such as Persistent Systems and Info Edge, which trade at significantly higher multiples. The enterprise value to EBITDA ratio of 15.99 further supported the upgrade. However, the upgrade was tempered by flat quarterly results and ongoing operational challenges, including a subdued profit before tax of Rs.223.00 crore excluding other income. The upgrade signals a cautious optimism but acknowledges the stock’s recent underperformance and technical weakness.

24 February 2026: Intraday Low of Rs.477 Amid Heavy Selling Pressure

Hexaware’s downward momentum intensified on 24 February, with the stock closing at Rs.477.65, down 5.17% on the day and hitting an intraday 52-week low of Rs.477. This decline outpaced the Sensex’s 0.78% fall and the IT - Software sector’s 2.92% drop, underscoring the stock’s relative weakness. The five-day losing streak culminated in a cumulative decline of nearly 19.81%. Technical indicators showed the stock trading below all major moving averages, signalling persistent bearish sentiment. The sector’s broader weakness compounded company-specific concerns, including the full pledge of promoter shares and flat quarterly earnings. Despite the market correction, the Sensex remained within 4.27% of its 52-week high, highlighting Hexaware’s underperformance.

25 February 2026: New 52-Week Low of Rs.471 Amid Continued Downtrend

On 25 February, Hexaware’s stock price fell further to Rs.467.25 intraday, closing at Rs.471, marking another 52-week low and a 2.18% decline for the day. This marked six consecutive days of losses, with a cumulative drop of 20.66%. The stock underperformed the IT - Software sector, which gained 2.48% that day, and the Sensex, which rose 0.41%. The stock’s technical position remained weak, trading below all key moving averages. Financially, the company’s quarterly PBDIT and profit before tax remained at recent lows, while the return on equity stayed strong at 23.3%. The full pledging of promoter shares continued to weigh on investor sentiment, raising concerns about potential forced selling. The divergence between Hexaware’s performance and the broader market rally emphasised company-specific challenges.

26-27 February 2026: Minor Recovery and Week Close

After the steep declines, Hexaware’s stock showed slight recovery on 26 February, rising 1.03% to Rs.472.05 on moderate volume, while the Sensex gained 0.19%. However, this was insufficient to reverse the week’s losses. On 27 February, the stock inched up 0.34% to close at Rs.473.65, while the Sensex fell 1.16%. The week ended with Hexaware down 9.18% from the previous Friday’s close of Rs.521.50, significantly underperforming the Sensex’s 0.96% decline. The stock’s volume also tapered off sharply on the final day, suggesting cautious investor participation amid ongoing uncertainty.

Key Takeaways from the Week

Significant Underperformance: Hexaware’s 9.18% weekly decline starkly contrasts with the Sensex’s 0.96% fall, reflecting company-specific challenges amid a relatively stable market.

Multiple 52-Week Lows: The stock hit fresh 52-week lows on three consecutive days, signalling sustained bearish momentum and weak investor sentiment.

Promoter Share Pledging Risks: The full pledge of promoter shares, which doubled in the last quarter, remains a critical risk factor, potentially triggering forced selling in adverse market conditions.

Mixed Financial Signals: Despite flat quarterly results and declining operating margins, Hexaware maintains a strong return on equity of 23.3% and a debt-free balance sheet, indicating underlying financial resilience.

Valuation and Rating Upgrade: The MarketsMOJO upgrade to Hold reflects improved valuation metrics relative to peers, though operational headwinds and technical weakness temper near-term outlook.

Conclusion

Hexaware Technologies Ltd’s stock faced a challenging week marked by steep declines, multiple 52-week lows, and persistent selling pressure. While the broader market and IT sector showed relative resilience, Hexaware’s underperformance was driven by subdued quarterly profitability, elevated promoter share pledging, and technical weakness below key moving averages. The MarketsMOJO upgrade to Hold signals a cautious stance, recognising improved valuation but acknowledging ongoing risks. Investors should monitor the company’s operational recovery and promoter pledge developments closely as the stock attempts to stabilise after this pronounced downtrend.

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