Hexaware Technologies Limited

Technology — Information Technology Services · NSE

₹583.00+₹7.20 (+1.25%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Hexaware Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hexaware Technologies Limited provides information technology consulting, software development, and business process services worldwide.

IndustryInformation Technology Services

SectorTechnology

Employees34,506

Annual revenue₹13,430 Cr

How does it make money?

Turns over ₹13,430 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 34,506 employees supports ₹38.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.9%

Net margin10.2%

Revenue / employee₹38.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.5% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE24.0%

ROE21.5%

Peer median ROE32.0%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 8.8% and earnings to grow about 18.5% in the year to 2027. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.8%

Est. earnings growth+18.5%

Analysts15

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +46% while net margin moved +6% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+46%

Margin effect+6%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 26.7x already prices in growth
✓ P/E is 25% below its own historical median of 35.6x — cheap by its own standards
✗ P/B of 5.30x is a steep premium to book

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.7x

2Y Median

35.6x

22 monthly readings · mean 32.6x · range 20.2x–49.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 2y median of 35.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 62% above the peer median of 16.5x.

vs. its own history

Cheap

35.6x median over 22 months · -25%

vs. sector peers

Expensive

16.5x median of 4 peers · +62%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.7x

P/B

5.30x

EV/EBITDA

16.0x

PEG

1.70

Dividend Yield

1.46%

What's Good / What's Bad

🟢 What's Going Well5

Cash generation is improving
Free cash flow is up 124% over 3 years.
High return on capital employed
ROCE of 24.0% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 26.7x the stock trades 25% below its own median of 35.6x.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 49% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 49% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 102% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 25% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1,572 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 62% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.4% CAGR
Latest reported year was 17.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1,572 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹35,551 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

26.7x

Fair

Fairly valued against the generic band

P/B Ratio

5.30x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹21.8

Profitable

Profitable on a per-share basis

ROE

21.5%

Strong

Strong capital efficiency

ROCE

24.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

17.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-12.5%

Falling

Profits are shrinking

Dividend Yield

1.46%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,471 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹583

P/E (Forward)

21.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

11.8%

Good

Assets are working hard

Operating Margin

13.7%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

52W Range Position

45%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

519.4 / 534.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

85.1

Overbought zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹9,200 Cr	₹10,380 Cr	₹11,974 Cr	₹13,430 Cr	+13.4%
EBITDA	₹1,393 Cr	₹1,601 Cr	₹2,028 Cr	₹2,137 Cr	+15.3%
EBITDA Margin	15.1%	15.4%	16.9%	15.9%	—
PAT (Net Profit)	₹884 Cr	₹998 Cr	₹1,176 Cr	₹1,369 Cr	+15.7%
EPS	₹29.06	₹16.41	₹19.29	₹22.16	-8.6%
ROE	21.4%	21.5%	22.0%	21.7%	—
ROCE	25.3%	25.7%	26.1%	24.0%	—
Total Debt	₹457 Cr	₹394 Cr	₹574 Cr	₹681 Cr	+14.2%
Free Cash Flow	₹701 Cr	₹1,451 Cr	₹1,415 Cr	₹1,572 Cr	+30.9%

🟢 Revenue has grown at 13.4% a year over 3 years.

🟢 EBITDA has grown at 15.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.9% over 3 years.

🟢 PAT (Net Profit) has grown at 15.7% a year over 3 years.

🔴 EPS has shrunk at 8.6% a year over 3 years.

🟡 ROE has held roughly flat at 21.7% over 3 years.

🔴 ROCE has fallen from 25.3% to 24.0% over 3 years (-1.2 pts).

🔴 Total Debt has grown at 14.2% a year over 3 years.

🟢 Free Cash Flow has grown at 30.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹10,905 Cr

Total Liabilities

₹4,592 Cr

Total Debt

₹681 Cr

Cash & Equivalents

₹1,971 Cr

Operating Cash Flow

₹1,739 Cr

Capex

-₹168 Cr

Shareholding (proxy)

Institutional Holding

19.1%

Insider Holding

75.2%

Corporate Actions

Dividend Rate

₹8.5

Ex-Dividend Date

05 May 2026

Analyst Consensus

Recommendations

11 Buy · 3 Hold · 4 Sell

Target Price (Mean)

₹569.33

-2.3% vs CMP

Target Range

₹440 – ₹670

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

4 mixed2 general

Hexaware Technologies (NSEI:HEXT) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Hexaware Technologies share price zooms 12% on Anthropic tie-up

Business Standard, 09 OctPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Hexaware Technologies share price surges 12%, up for 5th consecutive session - What's next for the stock? Experts decode

Livemint, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Hexaware Technologies Share Price Jumps Over 12% After Partnership With Anthropic Claude For AI Services

NDTV Profit, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Why Hexaware Technologies Share Price is Rising

Equitymaster, 09 Oct

Hexaware Technologies Limited (HEXT.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong14.1/20

🟢Financial HealthStrong16.5/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong11.5/15

🟡ValuationFair7.9/15

🟢RiskLow7/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 10% a year13.4% CAGR
✓EBITDA margin holds above 14%15.9%
✓Free cash flow remains positive₹1,572 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 21%24.0%