HSBC has initiated coverage on Hexaware Technologies with a ‘Buy’ rating and a target price of ₹950, implying a 20.4% upside from the current market price of ₹788.90.
The brokerage believes Hexaware is well-positioned to deliver top-quartile growth in the IT services sector, supported by its balanced sales engine and robust client-mining capabilities. HSBC projects a +20% EPS growth over the next two years, and at a current valuation of 34x forward earnings, the stock offers a compelling growth-to-valuation ratio.
While the outlook remains optimistic, HSBC flagged exposure to U.S. government-linked entities and potential stake sales by private equity investors as key risks that could weigh on investor sentiment in the near term.
Overall, Hexaware’s growth-led fundamentals and strategic execution offer long-term upside, according to HSBC.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
