NSEI:HEXAWARE

Stock Analysis Report

Hexaware Technologies

Executive Summary

Hexaware Technologies Limited provides information technology consulting, software development, and business process management services worldwide.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Hexaware Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HEXAWARE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

HEXAWARE

-1.7%

IN IT

-1.2%

IN Market


1 Year Return

5.1%

HEXAWARE

4.0%

IN IT

6.4%

IN Market

Return vs Industry: HEXAWARE exceeded the Indian IT industry which returned 4% over the past year.

Return vs Market: HEXAWARE underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

HEXAWAREIndustryMarket
7 Day-1.2%-1.7%-1.2%
30 Day5.1%-0.4%-3.6%
90 Day5.8%7.4%-0.5%
1 Year6.9%5.1%6.7%4.0%8.4%6.4%
3 Year70.8%61.1%69.3%59.4%20.9%14.3%
5 Year49.8%33.9%50.5%36.7%29.8%18.0%

Price Volatility Vs. Market

How volatile is Hexaware Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hexaware Technologies undervalued compared to its fair value and its price relative to the market?

16.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HEXAWARE (₹365.05) is trading above our estimate of fair value (₹300.4)

Significantly Below Fair Value: HEXAWARE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HEXAWARE is poor value based on its PE Ratio (17x) compared to the IT industry average (11x).

PE vs Market: HEXAWARE is poor value based on its PE Ratio (17x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: HEXAWARE is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HEXAWARE is overvalued based on its PB Ratio (3.9x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Hexaware Technologies forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEXAWARE's forecast earnings growth (11.3% per year) is above the savings rate (6.5%).

Earnings vs Market: HEXAWARE's earnings (11.3% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: HEXAWARE's earnings are forecast to grow, but not significantly.

Revenue vs Market: HEXAWARE's revenue (12.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: HEXAWARE's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HEXAWARE's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has Hexaware Technologies performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEXAWARE has high quality earnings.

Growing Profit Margin: HEXAWARE's current net profit margins (11.5%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: HEXAWARE's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: HEXAWARE's earnings growth over the past year (9.9%) is below its 5-year average (13.3% per year).

Earnings vs Industry: HEXAWARE earnings growth over the past year (9.9%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: HEXAWARE's Return on Equity (23.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hexaware Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HEXAWARE's short term assets (₹17.3B) exceed its short term liabilities (₹12.1B).

Long Term Liabilities: HEXAWARE's short term assets (₹17.3B) exceed its long term liabilities (₹1.9B).


Debt to Equity History and Analysis

Debt Level: HEXAWARE's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HEXAWARE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HEXAWARE's debt is well covered by operating cash flow (416.8%).

Interest Coverage: HEXAWARE's interest payments on its debt are well covered by EBIT (104.7x coverage).


Balance Sheet

Inventory Level: HEXAWARE has a low level of unsold assets or inventory.

Debt Coverage by Assets: HEXAWARE's debt is covered by short term assets (assets are 12.1x debt).


Next Steps

Dividend

What is Hexaware Technologies's current dividend yield, its reliability and sustainability?

2.33%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: HEXAWARE's dividend (2.33%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HEXAWARE's dividend (2.33%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: HEXAWARE's dividend payments have been volatile in the past 10 years.

Growing Dividend: HEXAWARE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.5%), HEXAWARE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEXAWARE's dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Keech Srikrishna (49yo)

5.6yrs

Tenure

₹56,620,000

Compensation

Mr. R. Srikrishna, also known as Keech, has been the Chief Executive Officer of Hexaware Technologies Limited since July 28, 2014. Mr. Srikrishna served as Head of Global Sales - Infrastructure Services Di ...


CEO Compensation Analysis

Compensation vs Market: Keech's total compensation ($USD788.32K) is about average for companies of similar size in the Indian market ($USD636.02K).

Compensation vs Earnings: Keech's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
R. Srikrishna
CEO & Executive Director5.6yrs₹56.62m0.17% 182.5m
Vikash Jain
Chief Financial Officer1.3yrs₹8.72mno data
Gunjan Methi
Compliance Officer & Company Secretary9.9yrs₹2.48m0.0025% 2.7m
Ramakumar Singampalli
Chief Operating Officer0yrsno datano data
Vinay Kalingara
Head of Investor Relations0yrsno datano data
Bhagwant Bhargawe
Head of Legal0yrsno datano data
Aparna Jairam
Senior VP & Global Head of Marketing0yrsno data0.0054% 5.8m
Vishwanath Joshi
Chief People Officer0.08yrsno datano data
K. Nayagam
Senior VP of Global Revenue Assurance & Chief Learning Officer16.4yrsno datano data
Srinivasan Panchapakesan
Executive VP and Global Head of ATM Business & H&I Delivery13.5yrsno datano data

7.8yrs

Average Tenure

51yo

Average Age

Experienced Management: HEXAWARE's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
R. Srikrishna
CEO & Executive Director5.6yrs₹56.62m0.17% 182.5m
Jimmy Mahtani
Vice Chairman3.3yrsno datano data
Kosmas Kalliarekos
Non-Independent Non Executive Director6.3yrsno datano data
Atul Nishar
Non Executive Non Independent Chairman6.3yrsno data0.12% 125.8m
P. Chandrasekar
Additional Independent Non Executive Director11.7yrs₹300.00kno data
Meera Shankar
Independent Non Executive Director3.8yrs₹320.00kno data

5.8yrs

Average Tenure

59yo

Average Age

Experienced Board: HEXAWARE's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hexaware Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hexaware Technologies Limited
  • Ticker: HEXAWARE
  • Exchange: NSEI
  • Founded: 1990
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹108.910b
  • Shares outstanding: 298.38m
  • Website: https://hexaware.com

Number of Employees


Location

  • Hexaware Technologies Limited
  • Building No. 152
  • A Block, Sector - 3
  • Mumbai
  • Maharashtra
  • 400710
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532129BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1999
HEXAWARENSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1999

Biography

Hexaware Technologies Limited provides information technology consulting, software development, and business process management services worldwide. It offers application transformation management solutions, including cloudify application, API and enterprise application integration, and application managed services; business intelligence and analytics services, such as modern data architecture, enterprise data management, advanced analytics, data visualization, Internet of Things, and managed analytics; and business process services covering HIPAS-intelligent process automation, customer experience, finance and accounting, translation, revenue cycle management, banking and financial, insurance, and healthcare. The company also provides digital assurance services consisting of autonomous testing, BOT and AI testing, cloud quality assurance, data centric testing, test automation, managed testing, performance engineering, test advisory and consulting, and usability testing; enterprise solutions comprising BPM, Oracle EBS, Oracle Cloud, Peoplesoft, SAP, and Workday services; and infrastructure management services, which include Gen 4 managed, platform engineering, automation, and experience consulting. It serves the banking, capital market, education, healthcare, insurance, hospitality, logistics, manufacturing, professional service, and travel; hi-tech, platform, and information service; retail and CPG; telecom, media, and entertainment; and transportation industries. The company was founded in 1990 and is headquartered in Mumbai, India. Hexaware Technologies Limited is a subsidiary of HT Global IT Solutions Holdings Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:01
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.