See 25-30% return in Hexaware Tech: Aashish Tater

Hexaware Technologies can give 25-30% return within next two months, says Aashish Tater, Head of Research, Fortunewizard.com.

Tater told CNBC-TV18, "We have been focusing on few M&A deals, acquisitions and Hexaware Technologies is part of our those kind of stocks where we feel there could be a possible exit for existing players and the deal will happen at much higher levels. Recently we covered Karnataka Bank, Cipla and even United Spirits, which is our top pick last year for a target of Rs 1,440 at that point of time which much higher levels being revised." He further added, "Talking about Hexaware what interests me is the model that I particularly follow for these kind of movements. We feel that now this particular pattern has actually emerged and given the strong buzz if I align both the things we feel the deal size should happen somewhere around Rs 135-140 range." "What is interesting me in this particular play is we were checking past reports that there are possible three players and when we actually align with the annualized equivalent value that we actually follow for we feel that roughly the valuation should fetch approximately Rs 136 per share to the players who want to exit this particular stock." "General Atlantic and Chris Capital has already been reported to have hired investment bankers some six months back and now we feel the way the pattern has emerged, the likely possibility is that within next two months the stock would give you a reward of almost 25-30 percent." "If you see that W pattern that has emerged the stock has actually given you a defined stop loss of Rs 98.65 which is on closing basis. So on risk reward basis if I assume the technical snapshot and the fundamental aspects and this particular deal size that might happen, we feel the risk reward is extremely beneficial for short-term momentum." Disclosure: Safe to assume that the stocks discussed have been recommended to clients.