Hexaware Technologies’ stock climbed more than 3% on Thursday after brokerage firm Nuvama Wealth Management initiated coverage on the IT services company with a ‘Buy’ rating and a target price of ₹950 per share. As of 9:44 AM, the shares were trading 2.79% higher at Rs 795.40.
In its note, Nuvama highlighted Hexaware’s strong growth outlook backed by consistent client wins, healthy deal pipeline, and focus on digital transformation services. The brokerage expects the company to deliver a revenue CAGR of 11% between CY2024 and CY2027, supported by demand for cloud, AI, and automation-led solutions.
Nuvama also sees potential for margin expansion of around 250 basis points over the next three years, driven by operational efficiencies and better utilization levels. This is projected to result in a robust EBIT CAGR of 19% and EPS CAGR of 18% during the same period.
The brokerage emphasized that Hexaware’s valuations remain attractive compared to peers, especially given its improving profitability, strong cash flow generation, and diversified client base across key verticals.
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