Hexaware Technologies has target of Rs 110: SP Tulsian

Hexaware Technologies has target of Rs 110, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I have been expecting that the worst is over on Hexaware Technologies for the last one  week. But the clear indications has started coming in yesterday when we have seen little short covering and the fresh  renewed buying interest coming in. In fact the share has corrected because the management has given caution that  because of the sandy storm and because one of the customer going away from the company or maybe pruning their  Budget, the performance of the company will be taking a hit and the target of the earnings per share (EPS) for calendar  year 2012 since company follows the calendar year has been given at about Rs 11.70 EPS for whole of calendar year  2012 and that seems to be quite achievable. I won’t be surprised to see it closer to Rs 12."
He further added, "The management has been confident that going forward they do not see much problem and the  kind of positive bias because yesterday some report came, where the positive indications have been given with  respect to the IT spend and all that, I think the stock seems to have bottomed out."
"If you go by the fundamentals as I said on expected EPS of about 11.7 for calendar year ’12, which I expect it to at  least to move to more than 13 for calendar year ’13 and if you knockoff the Rs 400 crore, which the company is sitting 
on cash and cash equivalent in their books, the share is ruling at a price to earnings (PE) multiple of maybe close to  about 6 on calendar year’ 13 earnings, sub this cash balance or even if you take the entire of the operating, it is ruling at  a PE multiple of 7."
"The stake sale news is also very much there on the card, which management has not denied, in fact they have been  trying that for last six-eight months but maybe they are expecting a higher price for that. So taking all this into  consideration the stock looks quite safe, in fact downside is very limited from hereon maybe to the extent of about 5  percent or so but upside, you can again expect the stock to move to that old range of about Rs 110 to Rs 120. So, on  the hope I have given a target of Rs 110 in next six months or so."