Hexaware Technologies Limited (HEXT) AI Stock Analysis

• Market Cap: ₹467.43B
• Dividend Yield: 0.75%
• Average Volume (3M): 34.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 31,564
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 6.36
• Shares Outstanding: 608,832,800
• 10 Day Avg. Volume: 31,150
• 30 Day Avg. Volume: 34,476
• PEG Ratio: 2.22
• Price to Book (P/B): 8.64
• Price to Sales (P/S): 3.87
• P/FCF Ratio: 32.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹897.00
• Price Target Upside: 16.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: ₹775.00 ▲(0.68% Upside)

Hexaware Technologies shows strong financial performance with robust growth and a solid balance sheet, contributing positively to the overall score. However, technical indicators suggest bearish momentum, and the lack of a P/E ratio limits clarity on valuation, resulting in a moderate overall stock score.

Hexaware Technologies Limited Business Overview & Revenue Model

Company Description

Hexaware Technologies Limited provides information technology consulting, software development, and business process services worldwide. The company operates through Travel and Transportation, Financial Services, Banking, Healthcare and Insurance, Hi-Tech Professional Services, and Manufacturing and Consumer segments. It offers application services, including enterprise architecture consulting, application development, application rationalization and modernization, application support and maintenance, quality assurance and testing, and security and compliance; cybersecurity services, such as governance, risk, and compliance, hybrid cloud security, DevSecOps, and digital workplace security; automation-as-a-service and IT ops automation; and generative AI solutions comprising secure access, knowledge management, private LLM for legal, Tensai GPT/enterprise chatbot, multimodal connect, RapidX, case citation, personalized product recommendations, Amaze, smart sales advisor, medical coding acceleration, interaction analytics, and Bond Reco. The company provides ESG integration, net zero transition, and climate tech services; quality engineering and software testing services, such as software engineering, applications, application managed, and enterprise platform services. In addition, it offers business process, cloud, data and AI, digital IT operation, digital and software, and enterprise platform services. It serves banking, education and institutions, financial services, hi-tech, products and platforms, insurance, life sciences and healthcare, manufacturing, professional services, retail and consumer, telecom and utilities, transportation and logistics, and travel and hospitality industries. The company was formerly known as Aptech Limited and changed its name to Hexaware Technologies Limited in January 2001. The company was founded in 1990 and is based in Navi Mumbai, India. Hexaware Technologies Limited is a subsidiary of CA Magnum Holdings.

How the Company Makes Money

Hexaware Technologies makes money primarily through its IT services and solutions offerings. The company's revenue model is based on providing digital transformation services, application management, and business process outsourcing to clients across various industries. Key revenue streams include long-term service contracts, project-based engagements, and consulting services. Hexaware also leverages partnerships with technology providers and alliances to enhance its offerings and expand its market reach. The company's ability to deliver cost-effective and innovative solutions is a significant factor contributing to its earnings.

Hexaware Technologies Limited Financial Statement Overview

Summary

Hexaware Technologies exhibits impressive financial health with strong growth, profitability, and a solid balance sheet. The company has effectively managed its leverage and maintained healthy cash flows, positioning itself well for future growth and stability in the competitive IT services industry.

Income Statement

Hexaware Technologies has demonstrated strong revenue growth with a CAGR of approximately 14% from 2019 to 2024. The company also maintained robust gross and net profit margins, averaging around 46% and 9% respectively, indicating efficient cost management and profitability. EBIT and EBITDA margins have shown consistent improvement, reaching 15% and 16% in the latest year, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio consistently below 0.2, indicating low leverage. The equity ratio averages around 60%, highlighting strong capitalization. Return on equity has been stable at around 22%, demonstrating effective use of shareholder funds. The high cash reserves and negative net debt position enhance financial flexibility.

Cash Flow

Hexaware's cash flow is strong, with consistently positive free cash flow and a growth rate exceeding 100% from 2020 to 2024. The operating cash flow to net income ratio is above 1, indicating good cash conversion efficiency. The free cash flow to net income ratio is also favorable, supporting strategic investments and potential shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.59B	119.74B	103.80B	92.00B	71.78B	62.62B
Gross Profit	53.59B	55.50B	46.55B	40.94B	33.69B	29.20B
EBITDA	20.29B	18.77B	15.79B	13.96B	11.98B	10.76B
Net Income	13.29B	11.76B	9.98B	8.84B	7.49B	6.21B
Balance Sheet
Total Assets	92.98B	89.94B	72.02B	65.12B	56.73B	51.38B
Cash, Cash Equivalents and Short-Term Investments	20.00B	19.77B	20.24B	12.92B	13.12B	10.11B
Total Debt	5.82B	5.74B	3.94B	4.57B	3.74B	5.93B
Total Liabilities	34.96B	36.40B	25.67B	23.89B	18.86B	19.02B
Stockholders Equity	58.04B	53.57B	46.35B	41.23B	37.88B	32.36B
Cash Flow
Free Cash Flow	15.21B	14.15B	14.51B	7.01B	8.71B	13.64B
Operating Cash Flow	16.78B	15.48B	15.16B	8.21B	9.80B	14.38B
Investing Cash Flow	-2.00B	-6.69B	-3.00B	-151.00M	-2.25B	-4.23B
Financing Cash Flow	-7.84B	-6.82B	-7.50B	-7.21B	-6.02B	-2.42B

Hexaware Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	566.90B	32.50	17.68%	1.90%	8.11%	10.73%
COFORGE	72 Outperform	599.24B	60.08	12.73%	0.84%	44.02%	18.92%
KPITTECH	71 Outperform	355.47B	43.63	28.83%	0.65%	17.09%	21.20%
TATATECH	68 Neutral	289.68B	42.27	18.91%	1.17%	0.00%	0.00%
LTTS	61 Neutral	454.29B	35.77	20.83%	1.25%	12.91%	-2.97%
HEXT	60 Neutral	₹467.43B	―		0.75%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Hexaware Technologies Limited Corporate Events

Hexaware Technologies Expands in GCC Market with Strategic Acquisition

Hexaware Technologies Limited has announced the acquisition of Tech SMC Square India Private Limited and Tech SMCSquared (GCC) India Private Limited, aiming to strengthen its position in the rapidly growing Global Capability Center (GCC) market in India. This acquisition will enhance Hexaware’s expertise and capabilities, allowing it to extend SMC’s offerings to its broader client base and integrate SMC’s GCC setup capabilities with its own strengths, thereby accelerating its go-to-market strategy.

Hexaware Technologies Acquires SMC Squared to Enhance GCC Offerings

Hexaware Technologies has acquired SMC Squared, a leader in building global capability centers, to enhance its GCC offerings. This strategic acquisition is expected to drive significant growth by combining SMC Squared’s expertise with Hexaware’s IT delivery capabilities, aiming to provide long-term value for global clients. The acquisition positions Hexaware to capitalize on the growing global GCC market, with plans to expand its delivery footprint and increase client activity in regions like Latin America, the UK, and Europe.

Hexaware Technologies Appoints New Vertical Head for High-Tech Professional Services

Hexaware Technologies Limited has announced the appointment of Mr. Kush Gupta as the Vertical Head of High-Tech Professional Services, effective July 7, 2025. Mr. Gupta, a seasoned executive with over 24 years in the tech services industry, has been instrumental in driving efficiency and digital adoption across multiple industries. His leadership is expected to further strengthen Hexaware’s competitive position in the IT space and enhance its service offerings in the U.S. market.