HEXT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | HEXT | Market Cap | 43,135 Cr. | Current Price | 706 ₹ | High / Low | 900 ₹ |
| Stock P/E | 41.7 | Book Value | 55.8 ₹ | Dividend Yield | 1.63 % | ROCE | 32.3 % |
| ROE | 25.7 % | Face Value | 1.00 ₹ | DMA 50 | 729 ₹ | 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 | 43.9 | MACD | -12.0 | Volume | 1,17,285 | Avg Vol 1Wk | 6,38,919 |
| Low price | 590 ₹ | High price | 900 ₹ | PEG Ratio | 4.27 | Debt to equity | 0.11 |
| 52w Index | 37.3 % | Qtr Profit Var | 37.8 % | EPS | 17.0 ₹ | Industry PE | 23.9 |
📊 Chart & Trend Analysis: HEXT is trading at ₹706, slightly below its 50 DMA (₹729) but aligned with its 200 DMA (₹707), indicating short-term weakness with medium-term support. RSI at 43.9 suggests neutral momentum, leaning towards oversold. MACD at -12.0 reflects bearish sentiment. Current volume (1.17L) is significantly lower than the weekly average (6.38L), showing weak participation. Bollinger Bands indicate price near the lower band, reinforcing consolidation with bearish bias.
📈 Momentum Signals: Short-term momentum is weak, with MACD negative and RSI neutral-to-weak. Low volume participation limits breakout potential.
🎯 Entry Zone: ₹690 – ₹705 (near immediate support)
🚪 Exit Zone: ₹730 – ₹750 (near resistance at 50 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹690 could trigger reversal towards ₹650, while recovery above ₹750 may signal bullish trend resumption.
Positive
- Strong ROCE (32.3%) and ROE (25.7%) highlight efficient capital use.
- Low debt-to-equity ratio (0.11) ensures financial stability.
- Dividend yield of 1.63% adds investor appeal.
- EPS of ₹17.0 reflects consistent profitability.
Limitation
- Stock trading below 50 DMA signals short-term weakness.
- High P/E ratio (41.7) compared to industry average (23.9) suggests overvaluation.
- PEG ratio of 4.27 indicates expensive growth prospects.
- Weak trading volume reduces conviction in recovery moves.
Company Negative News
- Decline in FII holding (-0.16%) signals reduced foreign investor confidence.
- Quarterly PAT decline from ₹328 Cr. to ₹271 Cr. shows earnings pressure.
Company Positive News
- Increase in DII holding (+0.18%) reflects domestic institutional support.
- Quarterly profit variation of 37.8% shows strong year-on-year growth despite sequential decline.
Industry
- IT services sector remains resilient with digital transformation demand.
- Industry P/E at 23.9 highlights moderate sector valuation compared to HEXT’s premium.
Conclusion
⚖️ HEXT is consolidating with a bearish bias. Entry near ₹690–₹705 offers cautious accumulation, while exits near ₹730–₹750 provide short-term profit booking. Strong fundamentals support long-term holding, but high valuation, weak volume, and recent earnings decline warrant patience for better entry opportunities.
Would you like me to extend this into a peer benchmarking overlay (Mphasis, Coforge, L&T Technology Services) so you can compare HEXT’s relative strength within the IT mid-cap basket?