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.

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.”