Hexaware IPO: Price Band, Investment Rationale, Financials, Peer Comparison And More — Dolat Capital

Hexaware's Rs 8,750 crore IPO comprises entirely of an offer for sale with no fresh issue. The market value at upper end of price band is Rs 43,025 crore..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..Dolat Capital Report.Hexaware Technologies Ltd. will launch its initial public offering on February 12 and the offer closes for subscription of Feb. 14. An IT services and consulting firm has set the price band of Rs 674-708 per share. The Rs 8,750 crore IPO comprises entirely of an offer for sale with no fresh issue. The market value at upper end of price band is Rs 43,025 crore..ViewHexaware has demonstrated healthy revenue/Profit CAGR of 13%/11% over CY’18-CY’23 along with 12.1%/6% YoY growth in 9M CY24. The increasing market share and revenue of tier-2 companies can be attributed to their agility, ability to focus on niche verticals, and capacity to serve smaller clients that Tier-1 firms often overlook. Q3 result commentary on the deal pipeline is turning increasingly favorable, with a large no. of smaller deals, newer opportunities and addressable space for Tier-2 names. We believe Hexaware is a worthwhile prospect to participate in Tier-2 IT services space at reasonable valuations. The valuations for Tier2 companies like Coforge and Persistent Systems have become relatively expensive with multiples of 36x/48x on FY’27 earnings. This universe is forecasted to average double-digit, mid-teens growth over FY24-FY27E. Assuming early double-digit growth and similar margins, Hexaware is available at 28.9x of FY27 EPS. While the company’s valuation is pricier compared to Mphasis (27.5 times on FY27E EPS), its revenue diversification (6 verticals), past growth trajectory and management aspiration to maintain above industry growth support our positive outlook and suggest resilience in maintaining margins. We recommend a ‘Subscribe’ on the issue..Click on the attachment to read the full report:.Hexaware Technologies Sets Price Band For Rs 8,750-Crore IPO.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 IPO: Price Band, Investment Rationale, Financials, Peer Comparison And More — Dolat Capital

The Rs 8,750 crore IPO will be launched on February 12 and the company has fixed the price band of Rs ⁠674-708 per share.

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Hexaware IPO: Price Band, Investment Rationale, Financials, Peer Comparison And More — Dolat Capital

The Rs 8,750 crore IPO will be launched on February 12 and the company has fixed the price band of Rs ⁠674-708 per share.

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