HEXT: AI Alliances And UK Expansion Will Support A Measured Outlook

Analysts have lifted their price target for Hexaware Technologies from ₹554 to about ₹590, citing updated fair value work that reflects slightly adjusted discount rate, revenue growth, profit margin and forward P/E assumptions.

What's in the News for Hexaware Technologies

• Joined the Microsoft Intelligent Security Association, with Hexaware's Azure and Microsoft 365 security solution validated by Microsoft experts and listed on the Microsoft Marketplace. Source: Company client announcement.
• Named an Anthropic Authorized Reseller for Amazon Bedrock, allowing Hexaware Technologies to sell, integrate, and support Claude models for enterprise clients worldwide as part of its AI focused service offering. Source: Company client announcement.
• Launched Tensai for Reasoning Ops, an operating stage of its Tensai Agentic ITOps platform that uses agents to interpret operational signals and recommend actions under a governed, evidence based framework. Source: Product related announcement.
• Announced a multi year partnership with SmartRent, Inc. to support AI driven transformation across support, revenue operations, and billing, aligned with SmartRent's Vision 2028 program. Source: Strategic alliances update.
• Committed £25 million to expand UK operations, including an enlarged Birmingham delivery center and new R&D centers in Manchester and Leeds, with plans to add around 1,200 jobs over three to five years. Source: Business expansion announcement.

Valuation Changes for Hexaware Technologies

• Fair Value has been revised from ₹554 to approximately ₹590, an increase of about 6.6%.
• Discount Rate has risen slightly from 15.21% to about 15.57%.
• Revenue Growth assumption is marginally lower, moving from around 11.30% to about 11.24%.
• Net Profit Margin assumption is slightly higher, shifting from roughly 10.30% to about 10.33%.
• Future P/E has been adjusted upward from about 26.4x to roughly 27.3x.