Hexaware Technologies Ltd Falls to 52-Week Low Amid Market Pressure

Stock Performance and Market Context

On 24 Feb 2026, Hexaware Technologies Ltd’s share price touched an intraday low of Rs.485.25, representing a 3.66% drop on the day and a 2.60% decline compared to the previous close. This new low comes after the stock has consecutively fallen for five trading sessions, accumulating a loss of 18.58% over this period. The stock’s current price is substantially below its 52-week high of Rs.900.15, underscoring the extent of the recent downturn.

Hexaware’s performance has notably lagged behind its sector and the broader market. The IT - Software sector declined by 2.92% on the same day, while Hexaware underperformed the sector by 0.74%. The Sensex itself fell by 419.60 points, or 0.79%, closing at 82,632.94, which is 4.27% below its 52-week high of 86,159.02. Despite the Sensex trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals for the broader market.

Hexaware’s stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, reflecting sustained downward momentum. Over the past year, the stock has delivered a negative return of 38.98%, in stark contrast to the Sensex’s positive 10.98% gain over the same period. This underperformance extends to longer time frames as well, with Hexaware lagging behind the BSE500 index over the last three years, one year, and three months.

Financial Metrics and Valuation

Despite the recent price weakness, Hexaware Technologies Ltd maintains some favourable financial metrics. The company’s average debt-to-equity ratio stands at zero, indicating a debt-free capital structure. Return on equity (ROE) remains robust at 23.3%, signalling efficient utilisation of shareholder funds. The stock’s price-to-book value ratio is 4.9, which reflects an attractive valuation relative to its earnings and asset base.

Profitability metrics, however, have shown signs of pressure in the latest quarter. The company reported its lowest quarterly PBDIT at Rs.377.90 crores, with the operating profit to net sales ratio dropping to 10.86%, the lowest in recent periods. Profit before tax excluding other income also declined to Rs.223.00 crores, marking a subdued earnings performance.

Promoter Shareholding and Pledging

A notable concern for the stock has been the status of promoter share pledging. Currently, 100% of promoter shares are pledged, a factor that can exert additional downward pressure on the stock price, especially in falling markets. The proportion of pledged holdings has doubled over the last quarter, intensifying market apprehension regarding potential forced selling or liquidity constraints.

This elevated level of pledged shares contrasts with the company’s otherwise conservative financial leverage, highlighting a key area of investor focus amid the stock’s recent volatility.

Sectoral and Broader Market Influences

Hexaware’s decline is occurring within a broader context of weakness in the IT - Software sector and the wider market. The sector’s 2.92% drop on the day reflects ongoing pressures that have affected many companies in the space. The Sensex’s fall of 0.79% further underscores the cautious sentiment prevailing among investors.

While the Sensex remains within striking distance of its 52-week high, Hexaware’s share price has diverged significantly, highlighting company-specific factors contributing to its underperformance. The stock’s sustained trading below all key moving averages suggests that the current trend remains bearish.

Long-Term and Recent Performance Trends

Hexaware Technologies Ltd’s share price has underperformed not only in the recent year but also over longer periods. The stock’s 38.98% negative return over the past 12 months contrasts sharply with the Sensex’s positive 10.98% return. This underperformance extends to the last three years and the past three months when compared to the BSE500 index, indicating persistent challenges in maintaining market confidence.

Despite the price decline, the company’s profits have risen by 24% over the past year, suggesting that earnings growth has not translated into share price appreciation. This divergence may reflect market concerns over other factors such as share pledging and valuation pressures.

Summary of Key Data Points

To summarise, Hexaware Technologies Ltd’s key metrics as of 24 Feb 2026 include:

• New 52-week low price: Rs.485.25
• 52-week high price: Rs.900.15
• Five-day consecutive decline: -18.58% returns
• Day’s intraday low: Rs.485.25 (-3.66%)
• Mojo Score: 51.0 (Hold), upgraded from Sell on 20 Feb 2026
• Market Cap Grade: 2
• Debt-to-Equity Ratio: 0 (average)
• Return on Equity: 23.3%
• Price to Book Value: 4.9
• Quarterly PBDIT: Rs.377.90 crores (lowest)
• Operating Profit to Net Sales (Q): 10.86% (lowest)
• Profit Before Tax less Other Income (Q): Rs.223.00 crores (lowest)
• Promoter Shares Pledged: 100%, doubled in last quarter

These figures illustrate a complex picture of a company with solid profitability metrics but facing significant market headwinds and share price pressure.

Conclusion

Hexaware Technologies Ltd’s fall to a 52-week low of Rs.485.25 reflects a combination of subdued quarterly earnings, elevated promoter share pledging, and broader sectoral and market weakness. The stock’s sustained trading below all major moving averages and its underperformance relative to benchmarks highlight ongoing challenges. While the company maintains a strong ROE and a debt-free balance sheet, the market has responded cautiously amid these developments.

Investors and market participants will continue to monitor Hexaware’s financial metrics and market dynamics as the stock navigates this period of volatility.

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