Hexaware Technologies an underperformer: Karvy

Karvy Stock Broking has recommended an underperformer rating on Hexaware Technologies with a target of Rs 35 in its September 16, 2008 research report. "At the end of CY07, the debtors which were above 6 months were Rs 195 million (8.5% of total debtors), of which the company has provided for Rs 128 million, which works to 66% of the long debtors. Though loans and advances considered doubtful at the end of CY07 was just Rs 5 million, the value of un-billed services in the loans and advances has been steadily going up, which accounts for 1/3rd of loans and advances. Though cash & bank (inclusive of liquid investments would be close to 50% of the stock, despite that we see very little upside. Given all that we believe the stock to underperformer and could go down by 15% from the current levels, target of Rs 35," says Karvy Stock Broking's research report.

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