Hexaware’s Billion Dollar Markets Hits in Bear Market: Should You Invest?

Hexaware Technologies is a global IT services leader specializing in AI-driven solutions, cloud transformation, and automation. Founded in 1992, the company serves industries like financial services, healthcare, manufacturing, and travel, helping businesses streamline operations and reduce costs.

With 73.4% of revenue from the Americas and 20.5% from Europe, Hexaware has a diversified client base. It operates 39 delivery centers worldwide, including in Tier-2 Indian cities like Ahmedabad, and offers innovative platforms like RapidX (digital transformation), Tensai (automation), and Amaze (cloud adoption). 

• Price Band: ₹674 – ₹708 per share
• Lot Size: 21 shares
• Minimum Investment: ₹14,154 (lower band) or ₹14,868 (upper band)
• Allocation: 50% for QIBs, 35% for retail investors, 15% for NIIs
• Listing Date: February 19, 2025 

Hexaware has shown consistent growth:

• Revenue (Sep 2024): ₹88,713 crore

• Profit After Tax (Sep 2024): ₹8,533 crore

   

The numbers look solid, but always dig deeper before investing. 

In House AI Powered Digital Platforms with Innovation in Focus: The company have developed three AI based digital platforms to enhance operational efficiency and help business to develop and grow. RapidX is a Gen AI powered software engineering platform that improves the software development lifecycle (SDCL) by automating tasks beyond code generation. Tensai is an enterprise automation platform that simplify IT operations, enhances efficiency. Amaze facilitates cloud migration, transformation and modernization allowing business to support AI powered automation for flawless cloud adoption. 

Expansion in New Regions with Strategic Partnership: The company provides their solutions across North America, Europe and APAC with major focus on US and UK. The company is expanding in Germany and Belgium by acquiring new customers and strengthening existing relationships. The company formed joint venture with Al-Balagh to combine their digital expertise with AI Balagh’s industry knowledge to offer solutions in Qatar and Novelty Group to provide digital transformation services to UAE targeting Middle Eastern markets. This diversification reduce dependency on singular markets.

Diversified customer base: The company focus is on maintaining a diversified customer base across the geographies and industries. The company strategy is customer acquisition and expansion. Prior to FY22, the major revenue from operations came from top clients, but with company current go to strategy, the source of revenue is distributed.

Enhance Talent and Optimize Cost Efficiency: The company is investing in talent development programs like Hexa Varisty and Mavericks Learning programs and offers to campus graduates with industry related skills to develop skilled employees and reduce the need for external hiring. 

Hexaware Technologies is one of the top 10 IT companies in India. They have a strong presence in key markets like India, the US, and the UK, and are continuously innovating in AI technologies. The company's revenue has been growing, and they are focused on staying profitable by managing costs efficiently. At a price of INR 708 per share, the issue is valued at a P/E ratio of 37.82x, based on a annualized Sept 24 EPS of INR 18.72. We recommend subscribing to this stock for the long term.

The Hexaware IPO is a high-profile event in 2025, offering a chance to invest in a company at the forefront of AI and digital transformation. While the risks are real, the company’s strong fundamentals and growth prospects make it worth considering. As always, do your research and align your investment with your financial goals.