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Hexaware Technologies Ltd. Stock Analysis

Mid Cap
Evaluated by 4786 users | BSE: 532129 | NSE: HEXAWARE |
IT - Software
Hexaware Technologies (HTL) is IT and Process outsourcing service provider in global space. HTL was incorporated on November 1992. The company provides technological solutions and specialises in Business Intelligence, Business Analytics, Enterprise Applications, Transportation, HR-IT and...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hexaware Technologies Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Capital Employed 6.62%25.02%31.58%37.54%35.31%30.55%27.04%25.9%26.04%26.32%
Value Creation Index -0.461.051.592.081.901.511.221.131.141.16
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4246799121,0201,1551,2941,3931,5241,7942,141
Y-o-Y Gr. Rt.-60.2%34.5%11.8%13.2%12%7.7%9.4%17.7%19.3%
Adjusted EPS (Rs.) 1.837.359.811.7111.2710.8710.9712.5714.3616.24
Y-o-Y Gr. Rt.-301.6%33.3%19.5%-3.8%-3.6%0.9%14.6%14.2%13.1%
Book Value per Share (Rs.) 30.0729.2433.1929.6334.4736.0343.0249.4755.0862.69
Adjusted Net Profit 53216291351339328331373426484
Net Op. Cash Flow (Rs. Cr.) 7.5122197269323288535250339365
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Hexaware Technologies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 19.7%13.2%15.4%19.3%
Adjusted EPS 27.5%7.6%14%13.1%
Book Value per Share 8.512.713.413.8
Share Price 20.8% 13.7% 13% 39.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Equity (%) 6.4724.8831.5437.535.2130.5227.0125.8625.9926.27
Operating Profit Margin (%) 12.8327.7236.0542.3633.8333.2832.5132.1631.329.68
Net Profit Margin (%) 12.5131.7731.8534.4429.3725.3323.7924.4823.7522.63
Debt to Equity 0000000000
Working Capital Days 171179173161169189167150165173
Cash Conversion Cycle 5515-8-1713024356978
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 91.16%
Institutions 2.94%
Non-Institutions 5.90%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Hexaware Technologies Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Hexaware Technologies Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Hexaware Technologies Ltd.'s performance infers:

Hexaware Technologies Ltd. earnings have grown by 7.6%, whereas share price has appreciated 13.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Hexaware Technologies Ltd. share prices over the last 10 years. Here is what we found out:

Hexaware Technologies Ltd. share price has appreciated 26.7% annually over the past ten years.

Hexaware Technologies (HTL) is IT and Process outsourcing service provider in global space. HTL was incorporated on November 1992. The company provides technological solutions and specialises in Business Intelligence, Business Analytics, Enterprise Applications, Transportation, HR-IT and Legacy Modernization. It delivers services to industries like Banking and Financial, Insurance and Travel transportation and logistics. The company’s onsite/offshore delivery model provides

Hexaware Technologies (HTL) is IT and Process outsourcing service provider in global space. HTL was incorporated on November 1992. The company provides technological solutions and specialises in Business Intelligence, Business Analytics, Enterprise Applications, Transportation, HR-IT and Legacy Modernization. It delivers services to industries like Banking and Financial, Insurance and Travel transportation and logistics. The company’s onsite/offshore delivery model provides significant cost savings. The development centers are assessed at SEI CMMI-Level 5, and are also ISO 9001:2000 and TickIT certified.

Founded in 1990 Hexaware today maintains seven state-of-the-art development centers – four in India and one each in Germany, USA and Mexico, and offices in North America, Europe and Asia Pacific, and employs around 6000 workers globally. Hexaware’s centers comply with the crucial quality and security best practices – SEI CMMI Level 5 and BS 7799.

In 2006, Hexaware acquired FocusFrame, a US based specialized testing consulting firm, in an all cash deal for $34.3 mn. FocusFrame is a California-based firm specializing in automated testing of ERP and custom applications. Their business revolves around systems verification, Quality Strategy and IT Governance solutions, and various functional, performance, and system stress verification exercises. The Company completed the integration of the Quality Assurance and Testing Services(QATS) operations of FocusFrame with Hexaware in early 2009.

Hexaware launched a joint venture Risk Technology International Limited in 2007. In the first quarter of 2009, Hexaware acquired the remaining stake from its JV partner Pemtrad International, to convert RiskTech into a wholly owned subsidiary.

Hexaware is committed to quality and its development centers are assessed at SEI CMMI Level 5. It is  also certified ISO 9001:2000, BS 7799, TickIT and SAS 70 Type 1. Hexaware has been certified as PCI DSS 1.2 (Payment Card Industry Data Security Standard) compliant. Payment Card Industry Data Security Standard is a data security standard promoting confidentiality of card holder data and facilitating the broad adoption of consistent data security measures globally.

It provides enterprise solution such as Peoplesoft, SAP, Oracle applications, JDE and Siebel. It has partnered with Microsoft to provide end to end solutions by using Microsoft’s Technologies.

Hexaware's global operations are located in North America, Europe and Asia Pacific. It is also listed on Luxembourg stock exchanges.

Business areas

Banking and Financial services- Under this it offers services in areas like asset management, corporate banking, retail banking and leasing. It provides wide range of services such as eagle, calypso, murex, temenos, GL trade, etc.

Insurance services- The company provides services in areas of underwriting, policy administration, claims administration and agency compensation. Under this it has created HexSOAF.

Travel transportation and logistics- It provides services to industries like Airlines and Airports, Travel and hospitality and Logistics. It provides solution like business analytics, Airlines MRO solutions, revenue accounting system, RFID Solutions etc. For Airline BPO services to offers caliber point business solutions.

Milestones

2014
Launch of Manufacturing Vertical
Launch of HCM service offering

2013
Hexaware opens delivery centre in Singapore
Wins large IT+BPO Multi Million Dollar deal for a Logistics Major in APAC
Wins the Application Partner of the Year 2013 – HCM Cloud [Asia Pacific]
Wins Top 100 CISO Award
Listed among Asia’s 200 Best Under a Billion on Forbes
Wins the first client in OTM
Winner of Top 100 CISO Award 2013.
Winner of BPO Excellence Awards 2012- 2013 [Subsidiary : Caliber Point].

2012
Launches several offerings through SaaS model leveraging Cloud Solutions, Mobile Testing Solutions as a new service offering in Enterprise Mobility
Ranks in International Association of Outsourcing Providers® (IAOP®) Global Outsourcing 100® list
Winner of the prestigious UK Oracle User Group PeopleSoft Partner of the Year Award for the year 2012.

2011
Wins a USD 250 mn contract - largest for the Company till date
Signs USD 177 mn contract
Wins Golden Peacock Award for Excellence in Corporate Governance

2010
Expands reach to 20 countries
Signs the first USD 100+ mn contract
Establishes Global Delivery Centre in Bengaluru, India
Global Platinum Partnership with Oracle

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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