Hexaware Technologies Ltd Falls to 52-Week Low of Rs.511.5 Amid Market Pressure

Stock Performance and Market Context

On 23 Feb 2026, Hexaware Technologies Ltd (Stock ID: 316432), operating in the Computers - Software & Consulting sector, recorded a day change of -2.14%, underperforming its sector by 1.63%. The stock has been on a downward trajectory for four consecutive trading sessions, cumulatively falling by 13.84% during this period. This decline has culminated in the stock hitting Rs.511.5, its lowest price point in the past 52 weeks, down from a high of Rs.900.15.

In contrast, the broader market has shown resilience. The Sensex opened 92.12 points higher and climbed further by 418.88 points to close at 83,325.71, a gain of 0.62%. Despite this positive momentum in the benchmark index, Hexaware’s stock has lagged significantly, with a one-year return of -37.58% compared to the Sensex’s 10.64% gain. The Sensex remains 3.4% below its own 52-week high of 86,159.02, with mega-cap stocks leading the rally.

Hexaware’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. This technical positioning reflects the stock’s ongoing weakness relative to both short-term and long-term price momentum.

Financial Metrics and Profitability Trends

Despite the stock’s price decline, Hexaware Technologies has demonstrated some positive financial attributes. The company maintains a low average Debt to Equity ratio of 0, indicating a debt-free capital structure. Its return on equity (ROE) stands at a robust 23.3%, suggesting efficient utilisation of shareholder funds. The stock’s price-to-book value ratio is 5, reflecting a valuation that investors have assigned relative to its book value.

Profitability metrics, however, reveal some softness in recent quarters. The company reported its lowest quarterly PBDIT at Rs.377.90 crores and an operating profit to net sales ratio of 10.86%, also the lowest recorded in the recent period. Profit before tax excluding other income (PBT less OI) fell to Rs.223.00 crores, marking a subdued earnings phase.

Notably, Hexaware’s profits have risen by 24% over the past year, a positive indicator amid the stock’s price weakness. This divergence between earnings growth and share price performance highlights a disconnect that has persisted over the last twelve months.

Shareholding and Market Pressure

A significant factor contributing to the stock’s downward pressure is the status of promoter share pledging. Currently, 100% of promoter shares are pledged, and the proportion of pledged holdings has doubled over the last quarter. This elevated level of pledged shares can exert additional selling pressure on the stock, particularly in falling markets, as lenders may seek to liquidate shares to cover margin requirements.

This dynamic adds a layer of complexity to the stock’s price movements, as it may amplify volatility and downside risk beyond fundamental performance.

Long-Term and Relative Performance

Hexaware Technologies has underperformed not only in the recent year but also over longer time horizons. The stock’s returns have lagged the BSE500 index over the past three years, one year, and three months. This consistent underperformance relative to a broad market benchmark underscores challenges in regaining investor confidence and market share within its sector.

While the broader sector and market indices have shown resilience and growth, Hexaware’s stock has struggled to keep pace, reflecting a combination of valuation pressures, shareholding concerns, and subdued quarterly results.

Mojo Score and Rating Update

Hexaware Technologies currently holds a Mojo Score of 51.0, which corresponds to a Mojo Grade of Hold. This represents an upgrade from its previous Sell rating, which was revised on 20 Feb 2026. The company’s Market Cap Grade remains at 2, indicating a moderate market capitalisation relative to its peers.

The upgrade to Hold reflects some stabilisation in the company’s fundamentals and valuation metrics, despite the recent price decline. The rating suggests a cautious stance, balancing the company’s attractive ROE and low leverage against the ongoing price weakness and share pledging concerns.

Summary of Key Price and Performance Indicators

To summarise, Hexaware Technologies Ltd’s stock has reached a new 52-week low of Rs.511.5, following a sustained four-day decline and a 13.84% drop over that period. The stock’s one-year return of -37.58% contrasts sharply with the Sensex’s positive 10.64% gain. The company’s financial profile includes a debt-free balance sheet, a strong ROE of 23.3%, and a 24% increase in profits over the past year, though recent quarterly profitability ratios have weakened.

Elevated promoter share pledging and consistent underperformance relative to broad market indices and sector peers continue to weigh on the stock’s price. The Mojo Grade upgrade to Hold reflects a nuanced view of the company’s current standing within the Computers - Software & Consulting sector.

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