Hexaware is a fast-growing automation-led next-generation service provider delivering excellence in IT, BPO and Consulting services. At the moment Hexaware Share price is around 619-625/share.
They are driven by a combination of robust strategies, passionate teams and a global culture rooted in innovation and automation.
The company not only showed stellar performance in 2020, but has also set itself up for sustained profitability. Despite a negative start to the year, the revenue grew by 12.2% and EBITDA grew by 24.2%.
Hexaware share price was 475/sh when it got delisted on 9th November 2020.
Following are the three main reasons why you should invest in Hexaware Technologies Ltd:
Hexaware Tech. is active in futuristic verticals: Poised for robust growth
Hexaware is leading their clients’ digital transformation experience to the next-level by leveraging industry-
leading delivery and execution model, built around a three-pronged strategy:
Amaze (Cloud Everything): Through Hexaware’s for Data & AI platform enables enterprises to leverage automation capabilities and to cloudify their Data Warehouse & Analytics ecosystems.
Tensai (Automate everything): Hexaware’s Tensai for AIOps provides incredible benefits to customers right from the launch of their applications, helps ensure that the applications run as per business demand and provides the appropriate levels of performance and availability.
Mobiquity (Transform Customer Experiences): A digital consultancy that partners with the world’s leading brands to design and deliver compelling digital products and services for their customers.
Investment By Calyle in Hexaware Technologies:
Carlyle Group, a US-based PE firm, bought Baring Private Equity Asia stake in the IT firm for reportedly close to $3 billion. The change in board comes at the back of this acquisition. Prior to the acquisition, then promoter Baring de-listed Hexaware from the Indian stock exchanges in November 2020.
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Why does this matter ?
- Private equity offers clear added value to a company. These are experts who constantly analyze businesses. As a result, they have a good insight into best practice, across diverse sectors.
- Exit Focused: Most private equity funds are extremely focused on timelines and this ensures that the portfolio company either goes for an IPO or a secondary buyout. In either case the investors get a timely exit from such companies
PE Ratio of Hexaware as compared to its peers:
Hexaware’s PE Ratio is about 24 and while its peers are trading at much higher multiples, eg Infosys’s PE Ratio is about 36.
This makes Hexaware’s current valuation attractive as when the company goes for a IPO, a re-rating would be likely. The PE ratio could up from 24 to industry standards, leading to an additional 30-50% upside for investors.
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