ICICI Securities Initiates Coverage on Hexaware Technologies with Buy Recommendation, Targets Rs 570

Hexaware Technologies Coverage Initiation

Key Takeaways

• ICICI Securities initiates coverage on Hexaware Technologies with a BUY rating.
• The research firm highlights Hexaware's diversified vertical mix, expertise in select sub-segments, and broad-based service mix as key strengths.
• The company's early adoption of Generative and Agentic AI services and stable leadership are also cited as positive factors.

Valuation and Outlook

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

• Hexaware Technologies trades at an attractive valuation of 16x CY27E EPS of INR 29.
• This represents an 8% discount to Mphasis and an 11% discount to the last 12 months (LTM) average.
• ICICI Securities sets a Target Price of INR 570 based on a price-to-earnings ratio of 20x CY27E EPS.

Recommendation

• BUY rating on Hexaware Technologies with a Target Price of INR 570.