HEXT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | HEXT | Market Cap | 27,352 Cr. | Current Price | 448 ₹ | High / Low | 900 ₹ |
| Stock P/E | 32.1 | Book Value | 53.3 ₹ | Dividend Yield | 2.57 % | ROCE | 33.5 % |
| ROE | 26.6 % | Face Value | 1.00 ₹ | DMA 50 | 493 ₹ | DMA 200 | 608 ₹ |
| Chg in FII Hold | -3.95 % | Chg in DII Hold | 3.73 % | PAT Qtr | 142 Cr. | PAT Prev Qtr | 271 Cr. |
| RSI | 42.3 | MACD | -5.20 | Volume | 2,15,119 | Avg Vol 1Wk | 2,25,432 |
| Low price | 400 ₹ | High price | 900 ₹ | PEG Ratio | 4.32 | Debt to equity | 0.13 |
| 52w Index | 9.49 % | Qtr Profit Var | -27.7 % | EPS | 12.8 ₹ | Industry PE | 21.6 |
📉 Chart Patterns & Trend: HEXT is trading below both its 50 DMA (₹493) and 200 DMA (₹608), confirming a bearish structure. Current price (₹448) is near support at ₹400, suggesting weakness with limited upside unless a rebound occurs.
📊 Momentum Indicators: RSI at 42.3 indicates weak momentum, while MACD at -5.20 confirms bearish crossover. Bollinger Bands show price drifting near the lower band, signaling continued pressure.
📈 Volume Trends: Current volume (2.15 lakh) is slightly below average weekly volume (2.25 lakh), reflecting muted participation and lack of strong buying interest.
🎯 Entry Zone: ₹430 – ₹450 (near support, potential accumulation zone).
🚪 Exit Zone: ₹490 – ₹510 (near 50 DMA resistance; profit-taking zone if rebound occurs).
🔎 Status: The stock is consolidating near support but remains in a broader downtrend. Sustained recovery requires price action above ₹608 (200 DMA).
Positive
- Strong ROE (26.6%) and ROCE (33.5%) highlight operational efficiency.
- Dividend yield of 2.57% provides steady income.
- Low debt-to-equity ratio (0.13) ensures financial stability.
Limitation
- High P/E (32.1) compared to industry average (21.6), limiting valuation comfort.
- PEG ratio of 4.32 signals overvaluation relative to growth.
- Technical weakness with price below both 50 & 200 DMA.
- Quarterly profit decline (-27.7%) raises near-term concerns.
Company Negative News
- FII holdings decreased (-3.95%), showing reduced foreign investor confidence.
- Quarterly PAT dropped from ₹271 Cr to ₹142 Cr.
Company Positive News
- DII holdings increased (+3.73%), reflecting domestic institutional support.
- EPS at ₹12.8 remains stable.
Industry
- IT/Tech services sector facing margin pressures due to global demand slowdown.
- Industry PE at 21.6 highlights competitive valuation environment.
Conclusion
⚠️ HEXT is technically weak, trading below key moving averages with bearish momentum. Fundamentals remain strong, but valuations are stretched and profits have declined. Short-term traders may consider entry near ₹430–₹450 with exits around ₹490–₹510. Long-term investors should wait for confirmation above ₹608 before fresh accumulation.
Would you like me to extend this into a long-term investment overlay comparing HEXT with peers like Infosys, TCS, and Wipro to highlight relative valuation and profitability strength?