Hexaware Technologies hits new high; surges 50% in three-months

Shares of Hexaware Technologies were trading higher by 3% at Rs 293, also its new high on the National Stock Exchange (NSE).

The stock has outperformed the market by surging 50% in past three months from Rs 195 on December 24, compared with 4.6% rise in the CNX Nifty and 11.5% gained in CNX IT sector index.

Since Feb 10, the stock rallied 23% after reported a better than expected results for the quarter ended December 2014 (Q4CY14).

According to the management, the growth is driven by efforts for customer delight, focus on top 70 clients mining, efforts to increase wallet share with larger deals and cross selling services like Infrastructure Management Services (IMS).

Analyst at Prabhudas Lilladher retains “BUY” rating on the stock with a target price of Rs 300.

“We see Hexaware Technologies at the point of inflexion in terms of growth driven by new strategic initiatives. We expect revenue momentum to be sustained with some improvement in margin in CY15,” analyst said in a report dated February 10, 2015.

Management has increased their focus on large deals. The strategy they want to drive is lower number of higher value deals. The deal pipeline for large deals continue to be healthy (2?3 large deals) even after strong closure during the quarter, added report.