Hexaware says not lost any clients, shares jump

Hexaware shares gained as much as 4 per cent on Monday after the mid cap IT outsourcer termed as baseless and malicious rumours that the company had lost one of its large clients.

Hexaware shares had fallen over 8 per cent in the last week against a 1 per cent gain on the broader BSE IT index. The stock traded 3 per cent higher at Rs. 83.20 as of 12 p.m. on the BSE.

"Hexaware categorically states that such speculation is false and mischievous. The company...has not lost any clients nor has it encountered any adverse outcomes in the recent deal pursuits. Hexaware continues to win new business and add new logos across all its major focus areas consistently," the company said in a statement to the BSE.

Hexaware is on course to meet its 18 per cent year-on-year revenue growth guidance for calendar year 2012, the company added.

The company is due to report its earnings for the three months to December 2012 on February 11, 2013.

Trade in Hexaware Tech, Polaris after results: Sukhani

Trade in Hexaware Tech  and Polaris after results, says Sudarshan Sukhani, s2analytics.com.

Sukhani told CNBC-TV18, “Hexaware Tech is bottoming out. It had been suggested as a buy after a long time some days ago also and the same for Polaris. We had these big moves in Polaris, but that is something that is unavoidable, because midcap IT suddenly took off. If somebody has the courage then takes the trade after results, not before.”

On Jan 21, Hexaware Technologies closed at Rs 90.45, up Rs 1.45, or 1.63%. It has touched an intraday high of Rs 91.25 and an intraday low of Rs 88.25.

It trades 36.3% below its 52-week high and 12.5% above its 52-week low. Market capitalisation stands at Rs 2,682.25 crore.

                                                 

Go long in Hexaware Technologies: Sudarshan Sukhani

Sudarshan Sukhani of s2analytics.com is of the view that Go long in Hexaware Technologies  .

Sukhani told CNBC-TV18, "Hexaware Technologies gives the sense that it is bottoming out. Midcap IT is doing well. I would be long in it if I wanted to go for midcap IT stocks. When you trade a stock like Hexaware on the long side we must be careful to keep and follow and obey our stop losses."

The company's trailing 12-month (TTM) EPS was at Rs 7.85 per share. (Sep, 2012). The stock's price-to-earnings (P/E) ratio was 11.51. The latest book value of the company is Rs 28.97 per share. At current value, the price-to-book value of the company was 3.12. The dividend yield of the company was 4.43%.

The share touched its 52-week high Rs 142 and 52-week low Rs 80.40 on 14 September, 2012 and 24 January, 2012, respectively. Currently, it is trading 36.44% below its 52-week high and 12.25% above its 52-week low. Market capitalisation stands at Rs 2,676.32 crore.

Hexaware Technologies (Rs 93.4): Buy

 

January 15, 2013:

We recommend a buy in Hexaware Technologies from a short-term perspective. It is apparent from the charts of the stock that after registering a multi-year high at Rs 142 in mid-September 2012, the stock peaked out. Since then, the stock has been in a medium-term downtrend. While trending down, the stock decisively breached its key supports at Rs 110 and Rs 100 in November and December respectively. However, the stock's significant support at Rs 85 arrested the decline in late December.

Triggered by positive divergence in daily relative strength index and cushioned by support area, the stock reversed direction and started moving higher. After breaching the 21-day moving average the stock emphatically broke through its immediate resistance at Rs 90 by gaining 4 per cent on Tuesday. Near-term trend for the stock is up. We notice that there is an increase in daily volume over past three trading sessions. The daily RSI is moving higher in the neutral region towards the bullish zone and weekly RSI has entered the neutral region from the bearish zone. The daily moving average convergence divergence indicator has signalled a buy and is moving higher in line with the stock price.

Further, the daily price rate of change indicator is featuring in the positive area implying buying interest. Taking a contrarian view on the stock, we are bullish on it from short-term perspective. We expect its rally to prolong and reach our price target of Rs 97 or Rs 99 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 91.5.

Buy Hexaware Technologies: Thununguntla

Jagannadham Thununguntla of SMC Global is of the view that one can buy Hexaware Technologies.

Thununguntla told CNBC-TV18. “ Hexaware Technologies at Rs 90 is a good contrarian bet wherein entire market is bearish on Hexaware, but what we have to see is that they have given a revenue guidance cut of about 2 percent and there is an expectation of a profit margin squeeze as well. Having said that at the current price the stock is trading around 8-8.5 PE multiple and if you adjust to the cash on the balance sheet the PE multiple will reduce further.”

He further added, “Hexaware Technologies is a zero debt company. I believe that at Rs 90 it makes a good sense. If you can average I think it makes sense to average also at this level. I think the stock should show decent performance. First quarter of the 2013 calendar year there can be some margin squeeze when they publish their financials. But I think it maybe a temporary phase. Eventually Hexaware can be a good buy and moreover there is always an anticipation of some deal happening in the stock should keep the upsides open. So all in all at Rs 90 it should be an opportunity to average.”

Expect 6-8% upside in Hexaware, Polaris: SP Tulsian

Hexaware Technologies and Polaris Financial Technology can add 6-8%, says SP Tulsian, sptulsian.com. Hexaware is likely to come out with good numbers in the first week of February and Polaris is also expected to post better numbers.

Hexaware Technologies  and Polaris Financial Technology  can add 6-8%, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I will remain away from the larger ones because we have already seenWipro  moving up last week by about 6-7 percent. TCS  also has come closer to a price to earnings (P/E) multiple of Rs 17-18 but I see quite a good ideas available in the midcap IT space. There are four-five stocks but I have zeroed in Hexaware and Polaris. If you see the performance of both the companies, they have been quite robust and I think considering the results now of Infosys and the expectations built on all the IT stocks, one should look for these midcap IT stocks for a relative performance."

He further added, "The gains are still seen much more on a relative performance basis. So Hexaware is likely to come out with good numbers in the first week of February and Polaris is also expected to post better numbers. So maybe an upside of about 6-8 percent can be expected on both the stocks next week."