Hexaware Technologies Ltd.
NSE: HEXTHexaware Technologies Ltd.: A 30-second snapshot
Hexaware Technologies (HEXT) trades at ₹484.15, down 28.4% over the past 12 months and 44.75% off its 52-week high, with the price sitting 23.9% below the 200-DMA. Trailing PE stands at 21.46x against a forward PE of 17.50x, while ROE of 22.27% and a 2.95% dividend yield characterise the fundamental profile. Debt-to-equity of 10.52 is an outlier within a sector where capital-light models typically carry near-zero leverage.
P/E
21.5
Forward P/E
17.5
ROE
+22.3%
Debt / Equity
10.52
Profit Margin
+10.1%
Div. Yield
+3.0%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
61/100
News
8 headlines · 4 positive · 0 negative
Hexaware Technologies Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next - simplywall.st
simplywall.st
Hexaware Technologies Limited Reports Earnings Results for the First Quarter Ended March 31, 2026 - marketscreener.com
marketscreener.com
Hexaware Technologies Completes Merger of Softcrylic LLC into Hexaware Technologies Inc, Effective May 01, 2026 - India IPO
India IPO
Hexaware Technologies Ltd Declared First Interim Dividend Of 8.50 Rupees Per Share - TradingView
TradingView
Hexaware Wins Seven Stevie® Awards at the 2026 American Business Awards® - PR Newswire
PR Newswire
Recent context
- ·Q1 2026 earnings beat expectations per analyst commentary published May 2026, with Hexaware reporting results for the quarter ended March 31, 2026; simplywall.st noted the beat but flagged ongoing analyst discussion about the forward trajectory.
- ·The merger of Softcrylic LLC into Hexaware Technologies Inc was completed effective May 1, 2026, consolidating the US digital and analytics subsidiary into the parent entity.
- ·Mean analyst rating of 1.81 across 16 analysts (1–5 scale, lower = more constructive) accompanied by the Q1 beat; despite this coverage posture, the stock declined approximately 15.8% in the 3 months ending May 16, 2026.
Strengths
- +ROE of 22.27% has been above 15% in 4 of the available years, indicating multi-year profitability above a common quality threshold.
- +FCF was positive in 4 of the available years, and a first interim dividend of ₹8.50 per share was declared in April 2026, supporting the 2.95% trailing yield.
- +Forward PE of 17.50x represents a 18.4% compression from the trailing PE of 21.46x, reflecting analyst earnings growth expectations embedded in consensus estimates across 16 analysts.
- +Revenue has grown at 12.6% compounded over 5 years, and the May 2026 completion of the Softcrylic merger into Hexaware Technologies Inc expands its US digital services footprint.
Weaknesses
- −Debt-to-equity of 10.52 is a structural outlier for an IT services company; the rising debt trend increases financial risk relative to a sector that typically operates with minimal leverage.
- −The stock is 44.75% below its 52-week high and has remained below the 200-DMA (₹636.52) for an extended period, with resistance levels at ₹496.62, ₹589.61, and ₹731.08 above current price.
- −5-year earnings growth of 7.9% lags revenue growth of 12.6%, indicating that margins have compressed over the measurement period; profit margin of 10.07% is below large-cap IT peers.
- −HEXT ranks 5th of 6 on PE and 4th of 6 on ROE among sector peers; TCS and INFY deliver ROE of 48.4% and 31.44% respectively against HEXT's 22.27%, while carrying lower PE multiples.
Open questions
- ?Does the debt-to-equity of 10.52 reflect operating lease capitalisation, acquisition financing, or working-capital borrowing — and how does each component change the risk picture?
- ?The forward PE of 17.50x implies earnings growth; what rate of margin recovery or volume acceleration is embedded in the analyst consensus, and how does that compare to the 5-year historical track record of 7.9% earnings CAGR?
- ?With the stock 44.75% below its 52-week high and positive near-term news flow, what explains the persistent gap between sentiment data and price action — and is there a structural overhang (promoter selling, index rebalancing, or short interest) that the available data does not capture?
- ?How does HEXT's 10.07% profit margin and 12.6% revenue CAGR compare to its nearest-sized IT peers over the same 5-year period, and does the Softcrylic integration alter the margin trajectory materially?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹484.15
SMA 50
₹450.18
SMA 200
₹636.52
RSI (14)
57.2 (neutral)
From 52w high
-44.8%
1Y return
-28.4%
3M return
-15.8%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 10.52 is substantially elevated for an IT services company; capital-light IT peers typically carry D/E below 1.0, and the trend is rising, compounding solvency-profile concerns.
- highStock is 44.75% below its 52-week high and 23.9% below the 200-DMA (₹484.15 vs SMA200 ₹636.52), with a -28.4% 1-year price change; it has spent an extended period below the 200-DMA.
- mediumHEXT ranks 5th of 6 peers on PE (21.46x vs INFY 14.62x, TCS 16.63x, WIPRO 15.13x) and 4th of 6 on ROE (22.27% vs TCS 48.4%, INFY 31.44%); quality score of 59 ranks 3rd of 6.
- medium5-year earnings growth of 7.9% lags 5-year revenue growth of 12.6%, implying margin compression over the period; profit margin of 10.07% trails large-cap IT peers.
- lowNews sample is limited to 8 articles; breadth of coverage is sparse relative to large-cap IT peers, reducing signal reliability.
Cross-section contradictions
- News sentiment is positive (4 positive, 0 negative across 8 articles) and Q1 2026 results beat expectations per coverage, yet the stock is down 28.4% over 12 months and 15.8% over the past 3 months — the earnings beat has not been reflected in price recovery.
- Trailing PE of 21.46x represents a premium to peers INFY (14.62x), TCS (16.63x), and WIPRO (15.13x), yet ROE of 22.27% is well below TCS (48.4%) and INFY (31.44%), placing HEXT at a valuation premium without commensurate profitability metrics.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 16 May 2026 · rotates through NIFTY 500 every ~5 days