Moneycontrol
    Moneycontrol PRO
    LAMF
    LAMF

    Hold Hexaware; target of Rs 206: Axis Direct

    Axis Direct has recommended hold rating on Hexaware with a target price of Rs 206 in its research report dated August 01, 2016.
    August 02, 2016 / 17:04 IST

    Axis Direct's research report on Hexaware

     
    Hexaware’s Q2CY16revenue was largely inline but margin disappointed. EBIT margin (14%) disappointment was due to service mix change, branding expenses (one-off), lower utilization and visa costs.
    Management expects H2 to be better with contribution from both revenue and margin improvement. Revenue growth will be led by core verticals of BFS (40% of rev.), Healthcare & Insurance (17%) and Manufacturing on strong pipeline. Management shared multiple margin levers exist– utilization (200-300 bps potential) and absence of visa /branding costs. However, given macro challenges are impacting decision making, growth rates will be lower for the IT sector. Hence, we build in 10% CAGR in revenue over CY15-17E for Hexaware.

    For all recommendations, click hereDisclaimer: 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.

    Read More Read More

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert:

    It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347