Check Before You Invest : Hexaware Technologies Ltd

BSE: 544362 NSE: HEXT ISIN: INE093A01041

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Hexaware Technologies Ltd belong to?

Hexaware Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Hexaware Technologies Ltd a good quality company?

Hexaware Technologies Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Hexaware Technologies Ltd undervalued or overvalued?

Hexaware Technologies Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Hexaware Technologies Ltd a good buy now?

Hexaware Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hexaware Technologies Ltd?

Hexaware Technologies Ltd revenue growth is 17.5% for FY-2025, which is below its 5-year CAGR of 24.93%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Return on capital employed is 34.66% for FY-2025, which is in line with its 5-year historical median of 33.88%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Return on Asset is 14.69%, which is below its 5-year historical median of 18.54%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Return on equity is 25.06% for FY-2025, which is in line with its 5-year historical median of 26.3%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Cash conversion cycle is 3 days, below its 5-year historical median of 42 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.39	1.33
ROE	25.06	26.3
ROCE	34.66	33.88
Cash Conversion Cycle	3 days	42 days

Q.6 Gross Profit margin of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.5% for FY-2025, which is below its 5-year median of 21%, indicating decreasing margins.

Q.7 Operating Profit Margin of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.2% for FY-2025, which is below its 5-year median of 20.54% indicating decreasing margins.

Q.8 Net Profit Margin of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Net Profit Margin is 10.55% for FY-2025, is below with its 5-year median of 14.58%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	17.5	21
Operating Profit Margin	18.2	20.54
Net Profit Margin	10.55	14.58

Q.9 Debt to Equity ratio of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Hexaware Technologies Ltd?

Hexaware Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hexaware Technologies Ltd?

Promoters hold 74.30% of the Hexaware Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hexaware Technologies Ltd vs industry peers?

Hexaware Technologies Ltd revenue CAGR is 24.93%, compared to the industry median CAGR of 18.62%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	17.5	18.6
Gross Profit Growth	10.1	11.2
Operating Profit Growth	11.1	12.6
Net Profit Growth	-0.5	9.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.39	1.23
ROE	25.06	25.84
ROCE	34.66	32.8
Cash Conversion Cycle (days)	2.89	31

Valuation & price assessment

Q.1 Stock return of Hexaware Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-1%	-1.7%	-36.1%

Q.3 Valuation ratios of Hexaware Technologies Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	35.08	24.07	47.37
Price to Book	8.67	6.54	2.63
Price to Sales	3.7	4.40	4.79
EV to EBITDA	19.58	15.32	16.48

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