HEXT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | HEXT | Market Cap | 25,806 Cr. | Current Price | 422 ₹ | High / Low | 900 ₹ |
| Stock P/E | 30.3 | Book Value | 53.3 ₹ | Dividend Yield | 2.72 % | ROCE | 33.4 % |
| ROE | 26.6 % | Face Value | 1.00 ₹ | DMA 50 | 553 ₹ | DMA 200 | 652 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.18 % | PAT Qtr | 142 Cr. | PAT Prev Qtr | 271 Cr. |
| RSI | 30.0 | MACD | -48.0 | Volume | 8,19,890 | Avg Vol 1Wk | 12,91,146 |
| Low price | 400 ₹ | High price | 900 ₹ | PEG Ratio | 4.06 | Debt to equity | 0.13 |
| 52w Index | 4.37 % | Qtr Profit Var | -27.7 % | EPS | 12.8 ₹ | Industry PE | 20.8 |
📊 HEXT shows strong fundamentals but weak short-term technicals. The RSI at 30.0 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-48.0) and price trading well below both the 50 DMA (₹553) and 200 DMA (₹652) reflect bearish momentum. Profitability has declined sharply (PAT down from ₹271 Cr. to ₹142 Cr., -27.7% variation), which raises caution. Despite this, strong ROCE (33.4%), ROE (26.6%), and a healthy dividend yield (2.72%) provide support for long-term investors.
💡 Optimal Entry Price: ₹410–₹425, near the recent low of ₹400.
📈 Exit Strategy (if already holding): Consider exiting around ₹545–₹560 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (33.4%) and ROE (26.6%) show efficient capital use.
- Dividend yield of 2.72% adds investor appeal.
- Low debt-to-equity ratio (0.13) indicates financial stability.
- DII holdings increased slightly (+0.18%), showing domestic support.
⚠️ Limitation
- Stock P/E (30.3) is higher than industry P/E (20.8), making it relatively expensive.
- Quarterly PAT declined significantly (-27.7%).
- PEG ratio of 4.06 suggests limited growth relative to valuation.
- Stock trading below both 50 DMA and 200 DMA reflects bearish sentiment.
📉 Company Negative News
- FII holdings declined (-0.16%), showing reduced foreign investor confidence.
- PAT dropped from ₹271 Cr. to ₹142 Cr.
📈 Company Positive News
- DII holdings increased (+0.18%), reflecting domestic institutional support.
- Dividend yield of 2.72% provides steady returns.
🏭 Industry
- IT services sector remains resilient but faces margin pressures.
- Industry P/E at 20.8 makes HEXT relatively expensive (P/E 30.3).
🔎 Conclusion
HEXT is fundamentally strong but technically weak in the short term. It may be suitable for swing trading if entered near ₹410–₹425, with a target around ₹545–₹560. Traders should exercise caution due to declining profits and bearish momentum, and monitor RSI recovery before committing heavily.