Hexaware Technologies Ltd Falls to 52-Week Low of Rs.563.2 Amid Market Underperformance

Stock Performance and Market Context

On 11 Feb 2026, Hexaware Technologies Ltd (Stock ID: 316432) recorded an intraday low of Rs.563.2, down 3.98% from the previous close. This marks the lowest price level for the stock in the past year, representing a decline of 37.4% from its 52-week high of Rs.900.15. The stock has been on a downward trajectory for six consecutive trading sessions, resulting in a cumulative loss of 22.37% over this period.

In comparison, the Sensex opened flat and ended marginally higher by 0.03%, trading at 84,302.18 points. The benchmark index remains robust, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a sustained bullish trend. The Sensex has gained 3.39% over the last three weeks and is only 2.2% shy of its 52-week high of 86,159.02.

Hexaware’s sector, Computers - Software & Consulting, has also outperformed the stock, with Hexaware underperforming the sector by 3.22% today. The stock currently trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent bearish momentum.

Financial Metrics and Profitability Trends

Despite the recent price weakness, Hexaware Technologies maintains a relatively stable financial profile. The company’s return on equity (ROE) stands at a healthy 23.3%, reflecting efficient utilisation of shareholder funds. Its price-to-book value ratio is 5.7, suggesting a valuation that remains attractive relative to its book value.

Hexaware’s debt-to-equity ratio averages at zero, indicating a debt-free capital structure which is a positive factor in terms of financial risk. Over the past year, the company’s profits have increased by 24%, a notable improvement despite the stagnant stock price which has delivered a 0.00% return over the same period.

However, quarterly results for December 2025 reveal some softness. The company reported its lowest quarterly PBDIT at Rs.377.90 crores and an operating profit to net sales ratio of 10.86%, the lowest in recent quarters. Profit before tax excluding other income also declined to Rs.223.00 crores, signalling margin pressures.

Promoter Shareholding and Market Impact

One notable concern is the status of promoter shareholding. Currently, 100% of promoter shares are pledged, a factor that can exert additional downward pressure on the stock price, especially in volatile or falling markets. The proportion of pledged holdings has doubled over the last quarter, signalling increased reliance on pledged shares as collateral.

This elevated level of pledged shares may contribute to heightened selling pressure if margin calls or deleveraging occur, adding to the stock’s recent declines.

Comparative Performance and Market Position

Over the last year, Hexaware Technologies has underperformed the Sensex, which has delivered a 10.51% return in the same period. The stock’s stagnation contrasts with the broader market’s gains and the sector’s relative strength, highlighting challenges in regaining investor confidence.

Hexaware’s Mojo Score currently stands at 51.0, with a Mojo Grade of Hold, upgraded from Sell on 10 Feb 2026. The Market Cap Grade is 2, reflecting its mid-cap status within the Computers - Software & Consulting sector.

Summary of Key Factors Influencing the Stock’s Decline

The stock’s fall to Rs.563.2 is the culmination of several factors. The persistent six-day losing streak and underperformance relative to the sector and Sensex reflect market sentiment and technical weakness. Trading below all major moving averages underscores the bearish trend.

Financially, while profitability metrics such as ROE and profit growth remain positive, recent quarterly earnings show margin compression and lower operating profit ratios. The doubling of pledged promoter shares adds a layer of risk that may weigh on the stock in turbulent market conditions.

Despite these headwinds, Hexaware’s debt-free balance sheet and attractive valuation metrics provide a degree of financial stability. The upgrade in Mojo Grade from Sell to Hold indicates some improvement in the company’s outlook, though the stock remains under pressure in the near term.

Market Environment and Sector Dynamics

The broader market environment remains constructive, with the Sensex near its 52-week high and supported by mega-cap stocks. The Computers - Software & Consulting sector continues to show relative strength, making Hexaware’s underperformance more pronounced.

Investors and analysts will be monitoring upcoming quarterly results and corporate developments closely to assess whether the stock can stabilise after this extended decline.

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