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."