HEXT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | HEXT | Market Cap | 42,181 Cr. | Current Price | 691 ₹ | High / Low | 900 ₹ |
| Stock P/E | 40.8 | Book Value | 55.8 ₹ | Dividend Yield | 1.67 % | ROCE | 32.3 % |
| ROE | 25.7 % | Face Value | 1.00 ₹ | DMA 50 | 726 ₹ | DMA 200 | 707 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.18 % | PAT Qtr | 271 Cr. | PAT Prev Qtr | 328 Cr. |
| RSI | 41.2 | MACD | -10.7 | Volume | 7,41,088 | Avg Vol 1Wk | 7,10,397 |
| Low price | 590 ₹ | High price | 900 ₹ | PEG Ratio | 4.18 | Debt to equity | 0.11 |
| 52w Index | 32.5 % | Qtr Profit Var | 37.8 % | EPS | 17.0 ₹ | Industry PE | 24.8 |
📊 Hexaware Technologies (HEXT) has strong fundamentals with high ROCE and ROE, but the stock is trading at a premium valuation compared to industry averages. The RSI at 41.2 suggests the stock is approaching oversold territory, which may provide a swing trade opportunity. However, MACD (-10.7) indicates weak momentum. The optimal entry price would be around ₹680–₹685, near the support zone. If already holding, consider exiting around ₹720–₹735, close to the 50 DMA resistance level.
✅ Positive
- Strong ROCE (32.3%) and ROE (25.7%) reflect efficient capital usage and profitability.
- Low debt-to-equity ratio (0.11) indicates financial stability.
- Dividend yield of 1.67% provides moderate income support.
- Quarterly PAT of ₹271 Cr. shows solid earnings, despite sequential decline.
- EPS of ₹17.0 supports earnings visibility.
⚠️ Limitation
- High P/E (40.8) compared to industry PE (24.8) suggests overvaluation.
- PEG ratio of 4.18 indicates limited growth relative to price.
- MACD (-10.7) signals weak short-term momentum.
- Stock trading below DMA 50 and DMA 200 shows technical weakness.
📉 Company Negative News
- Decline in FII holdings (-0.16%) shows reduced foreign investor confidence.
- PAT declined from ₹328 Cr. to ₹271 Cr., reflecting earnings pressure.
📈 Company Positive News
- DII holdings increased (+0.18%), showing domestic institutional support.
- Quarterly profit variation of 37.8% indicates strong year-on-year growth.
- Stock trading near support levels offers potential swing entry.
🏭 Industry
- IT services industry remains resilient with steady demand for digital transformation.
- Industry PE at 24.8 highlights Hexaware’s premium valuation.
- Sector outlook remains positive with long-term growth in cloud and digital services.
🔎 Conclusion
Hexaware Technologies is a fundamentally strong company with high returns and low debt, but its premium valuation and weak technical indicators limit short-term upside. For swing trading, entry near ₹680–₹685 is favorable, with an exit target around ₹720–₹735. While fundamentals support long-term confidence, traders should remain cautious due to current momentum weakness.