Indian IT firm Hexaware jumps in market return; JM Financial says 'buy'

Hexaware Technologies

19/02/2025 07:29

(Updates)
** Indian IT firm Hexaware Technologies'  HEXW.NS  shares climb
as much as 10%, more than expected, on first day of return to
stock market
    ** Stock opened at 745.5 rupees vs IPO price of 708 rupees;
last up 8.4% at 766.95 rupees
    ** The $1 bln IPO was bolstered by institutional investors;
lack of retail interest had led to expectations of a muted debut
    ** JM Financial starts with "buy" and PT of 820 rupees
    ** Says Hexaware's "strategy of going after scalable clients
with a wider bouquet of services has helped them hunt as well as
farm well", much like 'buy'-rated midcap peer Coforge  COFO.NS 
    ** JM values HEXW at 30x 24-month forward EPS, a 10% premium
to midcap IT sector, but a "justified" 25% discount to Coforge
-similar to levels before Hexaware went private in 2020
    ** Coforge's forward 12-month PE is 2nd-highest on 10-member
IT index  .NIFTYIT  - LSEG data

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))