Buy Hexaware Tech; target of Rs 110: PINC Research

15358 Investors following Hexaware Tech. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Hexaware Tech; target of Rs 110: PINC Research

PINC Research is bullish on Hexaware Tech and has recommended buy rating on the stock with a target of Rs 110 in its October 20, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate Oberoi Realty; target of Rs 275: Emkay Buy Reliance Industries; target of Rs 1060: Angel Broking Buy Hindustan Zinc; target of Rs 159: R K Global ALSO READ See previous views by PINC Research See what other Experts & Brokerages are saying about Hexaware Tech See messages about Hexaware Tech Hexaware Tech BSE | NSE 31/05/12 Are Mutual Funds betting on Hexaware Tech?

PINC Research is bullish on Hexaware Tech and has recommended buy rating on the stock with a target of Rs 110 in its October 20, 2011 research report.

"Hexaware's reported revenue growth of 5.3%QoQ to USD78.8mn led by 9.2% volume growth, slightly lower than expectation because of higher increase in offshoring, which lowered revenue but expanded operating margin (exceeding our expectation). EBITDA margin expanded 345bpsQoQ to 18.7%. Upped CY11 revenue guidance to 32%YoY. We believe the revenue momentum to continue due to further ramp up in large deals and new deals in pipeline. We expect margin to increase further due to levers like utilisation, more offshoring, and improvement in employee pyramid. We also revise estimates for INR/USD rate at 46 for CY11 and 47 for CY12. Considering these factors, our earnings estimates are revised upwards by 9.3% for CY11 and 18.2% for CY12."

"Revenue grew 9.5%QoQ to Rs3,660mn. Pricing for offshore & onsite increased 2.2%QoQ & 0.7%QoQ respectively. EBITDA margin was up 345bpsQoQ due to better gross margin (+156bps) & lower SG&A expenses (+189bpsQoQ), driven by higher pricing, offshoring, rupee depreciation negating the impact of onsite wage hike & dip in utilisation. PAT was Rs647mn (+7.3%QoQ) & EPS was Rs2.16 (Consensus Rs1.88, PINCe Rs1.91). We upgrade our rating to BUY with a target price of Rs 110 based on 12x CY12E EPS," says PINC Research report.  

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment