Hexaware Technologies Ltd (HEXT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Netweb Technol.

Persistent Syste

Coforge

Hexaware Tech.

KPIT Technologi.

L&T Technology

Inventurus Knowl

Affle 3i

Mphasis

Tata Elxsi

Tata Technolog.

Why is Hexaware Technologies Ltd ?

Company has a low Debt to Equity ratio (avg) at 0 times

Flat results in Dec 25

PBDIT(Q) Lowest at Rs 377.90 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 10.86%
PBT LESS OI(Q) Lowest at Rs 223.00 cr.

With ROE of 23.3, it has a Attractive valuation with a 4.2 Price to Book Value

Over the past year, while the stock has generated a return of -43.10%, its profits have risen by 24%

100% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 100% over the last quarter

Below par performance in long term as well as near term

Along with generating -43.10% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hexaware Tech. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hexaware Tech. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hexaware Tech.

-42.47%

-1.09

39.03%

Sensex

1.86%

0.15

12.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.80%

EBIT Growth (5y)

21.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.65

Tax Ratio

17.71%

Dividend Payout Ratio

53.24%

Pledged Shares

Institutional Holding

2.94%

ROCE (avg)

32.56%

ROE (avg)

21.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.18

EV to EBIT

16.19

EV to EBITDA

13.13

EV to Capital Employed

5.00

EV to Sales

1.87

PEG Ratio

Dividend Yield

2.65%

ROCE (Latest)

30.92%

ROE (Latest)

23.25%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(Q)

Highest at Rs 391.43 cr.

-8What is not working for the Company

PBDIT(Q)

Lowest at Rs 377.90 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 10.86%

PBT LESS OI(Q)

Lowest at Rs 223.00 cr.

NON-OPERATING INCOME(Q)

is 48.92 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 4.79

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Here's what is working for Hexaware Tech.

Profit After Tax (PAT) - Quarterly

Highest at Rs 391.43 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 391.43 cr has Grown at 22.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Hexaware Tech.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 223.00 cr has Fallen at -43.31%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 377.90 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 10.86%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 223.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 48.92 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 4.79

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 213.60 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income