Hexaware Tech. (HEXT)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I ask first whether the business earns high returns without heavy debt. Hexaware checks that: ROE 21.47%, ROCE 30.00%, debt/equity only 0.10. It generated ₹825 Cr free cash flow, pays a 2.50% dividend yield, and promoter holding is 74.30%, so skin in game is meaningful. Sales grew 17.90% and five-year revenue CAGR is 16.49%, while latest quarter sales were ₹3,478 Cr and net profit ₹292 Cr. Piotroski 8/9 and Altman Z-Score 3.97 suggest a financially sound, steady compounder. FairStock score 70/100, STEADY, fits that picture. But Graham would balk at the price. At ₹569.85, P/E is 26.10 and P/B 5.18 against book value ₹110.06. The Graham Number is ₹282.93 and DCF intrinsic value is ₹307.80, giving a negative margin of safety of -67.35%. Profit growth is -12.50%, and PEG 34.45 says the multiple is not supported by earnings growth. EV/EBITDA of -44.55 is odd and needs clarification. So I see a quality IT services business with a narrow-to-moderate moat, strong balance sheet, and decent revenue momentum, but recent profit decline and premium valuation are concerns. This is a Stalwart to watch, not a bargain. I would wait for either profit recovery or a price closer to intrinsic value before buying with a margin of safety. The 52-week range of ₹400.20 to ₹807.75 reminds me that Mr. Market can swing widely, but volatility is not the same as value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer