⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

HEXT - Swing Trade Analysis with AI Signals

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Rating: 3.4

Last Updated Time : 05 May 26, 03:34 pm

📊 Swing Trade Rating: 3.4

Stock Code HEXT Market Cap 28,009 Cr. Current Price 458 ₹ High / Low 900 ₹
Stock P/E 32.9 Book Value 53.3 ₹ Dividend Yield 2.51 % ROCE 33.5 %
ROE 26.6 % Face Value 1.00 ₹ DMA 50 492 ₹ DMA 200 606 ₹
Chg in FII Hold -3.95 % Chg in DII Hold 3.73 % PAT Qtr 142 Cr. PAT Prev Qtr 271 Cr.
RSI 47.1 MACD -4.94 Volume 4,37,599 Avg Vol 1Wk 2,75,856
Low price 400 ₹ High price 900 ₹ PEG Ratio 4.42 Debt to equity 0.13
52w Index 11.6 % Qtr Profit Var -27.7 % EPS 12.8 ₹ Industry PE 21.1

Analysis: HEXT has strong efficiency metrics with ROCE (33.5%) and ROE (26.6%), supported by low debt-to-equity (0.13). Dividend yield (2.51%) adds investor appeal. However, technicals are weak: the stock is trading below both 50 DMA (492 ₹) and 200 DMA (606 ₹), RSI (47.1) is neutral, and MACD (-4.94) is bearish. Quarterly PAT fell sharply (-27.7%), from 271 Cr. to 142 Cr., raising concerns. Valuation looks stretched with P/E (32.9) above industry PE (21.1) and PEG ratio (4.42). Current price (458 ₹) is closer to its 52-week low (400 ₹), suggesting limited upside unless earnings stabilize.

Entry Price: Best entry zone is near 440–460 ₹, close to support levels.

Exit Strategy: If already holding, consider exiting around 490–500 ₹, near short-term resistance, unless profit growth improves.

✅ Positive

  • Strong ROCE (33.5%) and ROE (26.6%).
  • Dividend yield of 2.51% provides investor appeal.
  • Low debt-to-equity ratio (0.13).
  • Volume higher than weekly average, showing active trading interest.

⚠️ Limitation

  • High P/E (32.9) compared to industry PE (21.1).
  • PEG ratio (4.42) indicates overvaluation.
  • Stock trading below both 50 DMA and 200 DMA.

📉 Company Negative News

  • Quarterly PAT dropped sharply (-27.7%).
  • Decline in FII holdings (-3.95%).
  • Bearish MACD (-4.94) signals weak momentum.

📈 Company Positive News

  • DII holdings increased (+3.73%).
  • Dividend yield (2.51%) adds stability.

🏭 Industry

  • Industry PE at 21.1 vs. HEXT’s 32.9, showing premium valuation.
  • IT services industry remains growth-oriented but faces margin pressures.

🔎 Conclusion

HEXT is fundamentally strong but technically weak in the short term. It may be a swing trade candidate if entered near 440–460 ₹, with a cautious exit around 490–500 ₹. Traders should monitor earnings recovery and institutional activity before taking larger positions.

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