Hexaware Gets 'Buy' Rating As Motilal Oswal Initiates Coverage

What sets Hexaware apart is its consistent growth, robust ecosystem partnerships, client mining, and its diversified vertical presence. While client sentiment remains cautious in the near term, the company is gaining ground in vendor consolidation deals against incumbents, particularly in Financial and Professional Services..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Backed by a strong foundation of strategic partnerships, differentiated capabilities, and a well-diversified revenue mix, Hexaware Technologies Ltd. is well-positioned within the mid-tier IT services space. What sets it apart is its sharp GTM strategy aimed at scalable growth, robust cash conversion, and deep client mining capabilities. However, the near-term outlook remains fluid, with discretionary tech spending still unfolding - particularly across key verticals like US Banking, Healthcare, and Hi-Tech. Hexaware’s strong execution, ongoing vendor consolidation wins, and midtier account traction provide resilience. We estimate a CAGR of ~12.2% in USD revenue for Hexaware over CY24-26E, outperforming the Tier-1 average of 4.1% and in-line with tier-2 average of 12.6%. Additionally, its Ebit margin is set to improve steadily from 14.6% in CY25E to 15.3% in CY27E, supported by operating leverage and offshore expansion. With an EPS CAGR of 20.8% over CY24-CY26E, higher than the Tier-I/Tier-II average of 10.0%/13.5%, Hexaware is in the top quadrant of performance within the industry. Given its strong execution, diversified vertical exposure and improving margin profile, we initiate coverage with a Buy rating. We value Hexaware at 32x Mar’27E EPS (15% discount to Coforge’s P/E multiple) with a target price of Rs 950 (19% upside). .Key risks: Top-5 accounts, particularly Fannie Mae, could impact financial performance if client spending slows; Discretionary IT spending remains in flux, particularly among large enterprises, as businesses adopt a “wait-andwatch” approach amid macro uncertainties;Rising competition from both IT service providers and in-house IT teams poses a challenge to maintaining market share and pricing power;Insourcing trend: As enterprises explore insourcing over outsourcing, HEXT must continuously innovate and deliver value-driven solutions to sustain long-term engagements;Shifting interest rate expectations, potential policy changes, and global trade tensions could impact client decision-making in key markets like the US and Europe..Click on the attachment to read the full report:.Ashok Leyland Share Price Slides Despite Robust Q4 Financials, Brokerages Largely Positive .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hexaware Gets 'Buy' Rating As Motilal Oswal Initiates Coverage

Given Hexaware's strong execution, diversified vertical exposure and improving margin profile, Motilal Oswal initiates coverage with a Buy rating.

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Hexaware Gets 'Buy' Rating As Motilal Oswal Initiates Coverage

Given Hexaware's strong execution, diversified vertical exposure and improving margin profile, Motilal Oswal initiates coverage with a Buy rating.

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