Hexaware Technologies - Downgrade one notch further to HOLD - Emkay

Reco: HOLD
CMP: Rs 97
Target Price: Rs 100

- Hexaware has cut it's CY12 rev guidance to 18 %( V/s 20% earlier) citing pressure in a top 10 client. Dec'12 qtr guidance pared to ~US$ 92 mn (V/s 2-4% QoQ growth guided earlier)

- Hexaware also expects EBITDA margins to be impacted by ~500-700 bps on a/c of the revenue losses. Company expects to recoup them from Q1CY13 onwards

- We pare our CY13/14E EPS by 16/13% each to Rs 10.6/12.3 driven by cut in revenue growth est and moderation in margin assumptions. Downgrade to HOLD, TP Rs 100

- Inexpensive valuations notwithstanding, improvement in fin performance needs to preclude a constructive view. Strong creditability built through recent consistency stands dented

Source : Equity Bulls

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