Buy Hexaware Tech; target of Rs 110: Sushil Finance

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Sushil Finance has recommended buy rating on Hexaware Technologies with a target of Rs 110, in its March 08, 2010 research report.

"Hexaware Technologies is a leading IT & BPO services provider and has adopted IP-led growth strategy by creating several IPs in the recent past. Its core expertise (also built via acquisitions in past) across all major ERP systems such as PeopleSoft, Oracle, SAP & Microsoft and ability to create customized solutions, help the Company in winning multiple large deals. Its realignment of business across strategic verticals with continued focus on sales and marketing augurs well for the Company. Going forward, we expect its consolidated revenues to grow by 0.2% & 10% in CY10E & CY11E respectively and its APAT to grow by 0.5% & 17.8% in CY10E & CY11E respectively.�h

"At CMP of Rs. 70, the stock is trading at an attractive valuation of 6.3x CY11E EPS of Rs.11.1. Given its strong domain expertise and technology capabilities, healthy balancesheet, and proven track record of managing large applications for Fortune 500/Global 500 clients, we initiate coverage on the stock with a "Buy" rating and a target price of Rs110 (based on 10x its CY11E EPS of Rs 11.1)," says Sushil Finance research report.

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