Citi assigns 'buy' rating to largecap IT stock; target indicates 18% potential upside

Shares of Hexaware Technologies have gained over 13 per cent in the past month.  At around the time of writing this copy, shares of the company were up 0.8 per cent or Rs 6.95 at Rs 839.65, while at the day's high it scaled levels of Rs 845.15 per share.

Foreign brokerage Citi has initiated buy call on the stock with the target at Rs 980, implying 18 per cent gains from the previous close. Citi sees good growth prospects together with a stable margin outlook, strong cash generation, and finds the current valuation of Hexaware Technologies attractive.

The brokerage also highlighted the company's strong positioning, supported by a solid management, a healthy deal pipeline, and successful entry across new geographies.

Further, it mentioned the company's consistent execution on growth, its efforts towards narrowing gap with peers as well as well as efficacy in navigating challenges.

Also, the brokerage added that any near-term correction could offer a relatively attractive entry point in the stock, with 'Hexaware Technologies' s the only 'Buy' in the sector under its coverage.

Motilal Oswal initiated coverage with 'buy' rating 

In late May, domestic brokerage Motila Oswal Financial Services (MOFSL) initiated a buy call on the counter with the target pegged at Rs 950 per share. The brokerage anticipates a CAGR of  around 12.2 per cent in USD revenue for the company over CY24-26E, outperforming the Tier-1 average of 4.1 per cent and in line with Tier-2 average of 12.6 per cent. Additionally, its EBIT margin is set to improve steadily from 14.6 per cent in CY25E to 15.3 per cent in CY27E, supported by operating leverage and offshore expansion. 

Hexaware Technologies Q4FY25 results

Net profit of the company jumped 17.02 per cent year-on-year in the March quarter. Profit during the quarter surged to Rs 327.2 crore as against Rs 279.6 crore in the same quarter of the previous year. Sales also rose 16.7 per cent to Rs 3207.90 crore in the quarter ended March 2025 as against Rs 2748.80 crore during the corresponding quarter of the previous year.

Hexaware Technologies' share price performance

Since listing in February this year, the stock has gained 19 per cent over the IPO issue price of Rs 70