Buy Hexaware Tech, target price Rs 320: Maybank Kim Eng Securities

Maybank Kim Eng Securities has maintained buy rating on Hexaware Technologies and raised target price by 3 per cent to Rs 320. The stock ended down 5.5 per cent at Rs 279.60 on Thursday while the BSE Sensex closed 997.46 points up (+3.05 per cent) at 33,717.62.

Hexaware Technologies Ltd., incorporated in 1992, has a market cap of Rs 8342.83 crore.

Investment Rationale


The brokerage believes that there is still some more upside. Valuation is inexpensive while free cash flow yield and dividend yield are attractive, said the brokerage.

Financials

For the quarter ended March 31, 2020, the company has reported consolidated sales of Rs 1585.17 crore, up 3.69 per cent from last quarter sales of Rs 1528.82 crore and up 25.41 per cent from last year same quarter sales of Rs 1264.02 crore. The company has reported net profit after tax of Rs 174.90 crore in the latest quarter.

Promoter/FII Holdings
Promoters held 62.44 per cent stake in the company as of March 31, 2020, while FIIs held 16.82 per cent, DIIs 12.86 per cent and retail investors 7.88 per cent.