Nuvama has initiated coverage on Hexaware Technologies with a buy rating and a target price of ₹950, expecting the mid-cap IT services player to continue outgrowing and outperforming its large-cap peers. The brokerage highlighted Hexaware’s current revenue base of USD 1.4 billion and market capitalisation of ₹438 billion, which it believes positions the company in a “sweet spot” for accelerating growth.
Nuvama said Hexaware’s strong client relationships, presence across verticals and service lines, and robust cash flow profile provide confidence in sustained growth. Over the CY24–27 period, it forecasts revenue to grow at a compound annual rate of 11% in dollar terms, with margin expansion of 250 basis points driving EBIT and EPS growth of 19% and 18% respectively.
At current levels, Hexaware trades at 28 times and 24 times estimated earnings for CY26 and CY27, broadly in line with mid-cap peers such as LTIMindtree and Mphasis. Nuvama believes this valuation is justified given the company’s superior growth outlook and improving profitability.
Disclaimer: The views and recommendations made in this article are those of Nuvama. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
