The brokerage believes the company shall continue to outgrow and outperform its large-cap peers with a top line of $1.4 billion and market capitalisation of ₹43,800 crore.
Nuvama envisages solid growth for the company over the next few years. This is likely to be driven by a revenue base in a “sweet spot”, coveted clientele, strong presence across verticals and service lines, and a robust cash flow profile, it added.
Over the calendar year 2024-27, Nuvama has estimated Hexaware Tech’s revenue to grow at a compounded annual growth rate (CAGR) of 11% in US Dollar terms. It has also estimated the company’s margin to expand 250 basis points, which should propel earnings before interest, tax, depreciation and amortisation (EBITDA) CAGR of 19% and earnings per share (EPS) CAGR of 18%.The stock is trading at 28x and 24x its CY26 and CY27 price-to-earnings estimates, Nuvama said. This is in line with mid-cap peers LTIMindtree nd Mphasis.
All 10 analysts that have coverage on Hexaware Technologies have a “buy” rating.
Hexaware Tech shares are trading 3.79% higher at ₹803.1, having gained another 3% on Wednesday as well.
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