Buy Hexaware Technologies, target price Rs 310: Maybank Kim Eng Securities

Maybank Kim Eng Securities has maintained buy rating on Hexaware Technologies and cut target price to Rs 310 from Rs 340. The stock ended flat at Rs 226.25 on Wednesday while the BSE Sensex closed 1203.18 points down (-4.08 per cent) at 28,265.31.

Hexaware Technologies Ltd., incorporated in 1992, has a market cap of Rs 6750.95 crore.

Investment Rationale


In a report tieled ‘Covid-19 impact priced in’, the brokerage said Hexaware's exposure to impacted industries such as travel, education and fitness is about 15 per cent of revenue. Maybank said the stock is trading below 2 standard deviations of its five-year mean. Strong management team and improving revenue mix keeps its well placed to capture demand, and client concentration risk is also declining, said Maybank.

Financials

Hexaware Technologies Ltd. key Products/Revenue Segments include Software Development Charges which contributed Rs 1794.02 crore to sales value (100.00 per cent of total sales)for the year ending December 31, 2018.
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 1528.82 crore, up 3.20 per cent from last quarter sales of Rs 1481.35 crore and up 22.07 per cent from last year same quarter sales of Rs 1252.42 crore. The company reported net profit after tax of Rs 167.60 crore in the latest quarter.