Wednesday, May 15, 2013


Add Hexaware in Core Portfolio
Hexaware is Indian mid sized IT company with a approx market cap of Rs.2500 crores.They have expertise in Enterprise solution,Infrastructure Management Services and exposure to Banking and Financial Service,Asset Management and Capital Market,Insurance Service,Healthcare and Life Science etc

The promoters currently holds 32% stakes and FII holds nearly 42% stakes in the company as per January-March quarter.More over Hexaware is Zero debt company.

Hexawares  consolidated income rose by 16 per cent to Rs 507.68 crore in the January-March quarter of 2013, from Rs 438.29 crore in the same quarter of 2012.The global headcount was 8,670 by the end of March 2013.
For the entire 2012 — the firm follows January-December fiscal — Hexaware had a net profit of Rs 327.64 crore, and revenue of Rs 1,948.17 crore.
Hexaware Technologies, a leading player in IT, BPO and consulting services  announced that it has secured a large contract worth potentially $177 million over a five-year term.
Hexaware has been associated with this leading U.S.-headquartered multinational company for several years. Through this contract, the company has a potential $100 million worth incremental business while extending existing business worth another $77 million over the course of the five year agreement. While it is an existing customer for Hexaware, this client also is a leading business process outsourcing client for Caliber Point Business Solutions, a 100 per cent wholly owned subsidiary of Hexaware.

At  current rate of Rs.80 the stock is trading at PE ratio of 8 with a fair valuation.So I initiate a buy call on Hexaware with a target of 120-130 range in next one year