Hexaware Applied sciences, integrated in 1992, is a Small Cap firm with a market cap of Rs 48570 crore) working in IT Software program sector.
Hexaware Applied sciences’ key merchandise/income segments embrace Data Expertise Merchandise for the 12 months ending 31-Dec-2023.
Financials
For the quarter ended 31-03-2025, the corporate has reported a Consolidated Whole Earnings of Rs 3212.30 crore, up 1.08% from final quarter Whole Earnings of Rs 3178.00 crore and up 16.42% from final 12 months identical quarter Whole Earnings of Rs 2759.30 crore. The corporate has reported web revenue after tax of Rs 327.10 crore within the newest quarter.
The corporate’s high administration contains Mr.Joseph McLaren Quinlan, Mr.Neeraj Bharadwaj, Ms.Sukanya Kripalu, Mr.Vivek Sharma, Mr.Milind Shripad Sarwate, Mr.Shawn Albert Devilla, Mr.Kapil Modi, Ms.Lucia De Fatima Soares, Ms.Sandra Pleasure Horbach, Mr.Srikrishna Ramakarthikeyan, Mr.Julius Michael Genachowski. Firm has BSR & Co. LLP as its auditors. As on 31-03-2025, the corporate has a complete of 61 crore shares excellent.
Funding Rationale
Backed by a powerful basis of strategic partnerships, differentiated capabilities, and a well-diversified income combine, Hexaware Applied sciences is well-positioned throughout the mid-tier IT companies house. What units it aside is its sharp GTM technique aimed toward scalable progress, strong money conversion, and deep shopper mining capabilities. Nevertheless, the near-term outlook stays fluid, with discretionary tech spending nonetheless unfolding – significantly throughout key verticals like US Banking, Healthcare, and Hello-Tech. Hexaware’s sturdy execution, ongoing vendor consolidation wins, and mid-tier account traction present resilience. Motilal Oswal Monetary Providers estimates a CAGR of ~12.2% in USD income for Hexaware over CY24-26E, outperforming the Tier-1 common of 4.1% and in-line with tier-2 common of 12.6%. Moreover, its EBIT margin is ready to enhance steadily from 14.6% in CY25E to fifteen.3% in CY27E, supported by working leverage and offshore growth.
With an EPS CAGR of 20.8% over CY24-CY26E, greater than the Tier-I/Tier-II common of 10.0%/13.5%, HEXT is within the high quadrant of efficiency throughout the business. Given its sturdy execution, diversified vertical publicity and enhancing margin profile, the brokerage has initiated protection with a BUY ranking. They worth Hexaware Applied sciences at 32x Mar?27E EPS (15% low cost to Coforge?s P/E a number of) with a goal worth of Rs 950 (19% upside).
Promoter/FII Holdings
Promoters held 74.71 per cent stake within the firm as of 31-Mar-2025, whereas FIIs owned 10.59 per cent, DIIs 9.06 per cent.
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