Hexaware Technologies - Retain BUY on inexpensive valuations - Emkay

Reco: BUY
CMP: Rs 83
Target Price: Rs 105

- Mar'13 qtr results inline on revenues, margins beat estimates aided by headcount rationalization. Better op profits and forex gains help drive net profit beat

- Op metrics performance mixed. Top client revenues grow by ~13% as non top client revenues remain flat. Europe drives growth amongst geographies

- June'13 qtr rev guidance slightly below par, co remains confident of pickup in H2CY13 driven by 'higher than co average' growth prospects within top 10 clients

- Moderate our US$ rev est a tad, Q1 beat leads to marginal changes in our EPS est to Rs 10.6/11.7( V/s Rs 10.4/11.8 earlier). BUY stays on inexpensive valuations at ~8x/7x CY13/14E P/E, ~5.5% dividend yield.

Source : Equity Bulls

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