Hexaware Technologies - 4QCY16 Result Update - Solid Quarter, Deal Wins Strong; Client-Specific Issue A Negative - Reliance Securities

We believe improving order book metrics would propel double-digit USD and CC revenue growth in CY17E, albeit the client-specific issue leads us to cut our revenue estimates by 2%. We had also initially expected around 90bps EBIT margin expansion, which we now cut by 62bps. Nonetheless, we believe Hexaware will still comfortably achieve double digit USD revenue growth for CY17E along with healthy 15% EPS growth, while the share buyback should provide downside support to the stock. High RoE and reasonable valuation further boost our comfort level. We reiterate our BUY recommendation on the stock, albeit with a lowered Target Price of Rs216 (from Rs240 earlier)

Shares of HEXAWARE TECHNOLOGIES LTD. was last trading in BSE at Rs.204.65 as compared to the previous close of Rs. 202.25. The total number of shares traded during the day was 584171 in over 2012 trades.

The stock hit an intraday high of Rs. 206.35 and intraday low of 202.55. The net turnover during the day was Rs. 119289767.

Source : Equity Bulls

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