JM Financial maintains Buy on Hexaware Technologies; lowers target price to Rs 860
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JM Financial maintains a Buy call on Hexaware Technologies with a revised target price of Rs 860 (Rs 880 earlier). The current market price of Hexaware Technologies is Rs 710.3.Hexaware reported a seasonally soft quarter (-0.2% cc QoQ), as anticipated (JMFe: 0.3%). It however reiterated its positive outlook for CY25, despite isolated instances of delay and ramp-down. These, concentrated in Hexaware Technologies' two Government Sponsored Entity (GSE clients, are now behind, per the management. Deal ramp has commenced in one. A large consolidation opportunity has risen in the other from 100 to 10 vendors. Besides, on-track ramp in another deal and steady build-up of consolidation deals in the pipeline underpin management's optimism. They characterised sequential growth in next three quarters as - good for Q2, accelerated for Q3 and positive for Q4. Such bottom-up granular growth construct makes the outlook non-contingent on macro. Importantly, HEXT increasing participation in mega deals, even where they are not incumbents, reflects a) sales focus on high quality logos; b) strong execution/delivery; and c) platform-led transformation/efficiency capabilities. These are medium-term positives. Near-term too, priority is growth over margin as it continues to invest in new growth areas, notably legacy modernisation. Margin guidance is stable too, at 17.1-17.4% (incl. other income).JM Financial has lowered its CY25E cc growth assumption from 12.8% to 10.5%. However, a favourable cross-currency expectation now (vs headwind earlier) restricts USD growth cut to 130bps. The brokerage has raised EBITDA margin estimates by 20-30bps. 2-3% cut to EPS is also flowing from dilution impact. They maintain a BUY, but have lowered the target price to Rs 860 from Rs 880 earlier.Promoters held 74.71 per cent stake in the company as of 31-Mar-2025, while FIIs owned 10.59 per cent, DIIs 9.06 per cent.
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Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Headquartered in Ranchi, Monolithisch India Limited, the manufacturer of specialized ramming mass has announced the launch of its Initial Public Offering ( IPO ) on the NSE Emerge IPO opens on June 12, 2025, and closes on June 16, 2025, with a price band of Rs 135 to Rs 143 per equity share. Envisages to set up new manufacturing plant of ramming mass used in the Induction furnaces of iron & steel manufacturer of silica based ramming mass, will issue 57,36,000 equity shares aiming to raise Rs 82.02 crores. The face value of equity shares is Rs 10 each. The issue is being managed by Hem Securities with KFin Technologies Limited as registrar to the minimum application lot is 1,000 shares. 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