1 week ago
Hexaware Shares Surge After AI Day as Broker Targets Diverge
Hexaware is a technology company whose shares went up after it held an AI Day event.
Its shares rose 7.70% and reached Rs 574.20 on the BSE.
The company wants to win more large customer contracts.
It is also looking for new business from artificial intelligence, healthcare, market data, and professional services.
Some brokerages think the company could grow strongly and gave it high price targets.
Other brokerages were more cautious and gave lower targets or recommended holding or selling the stock.
One concern is that some large customers are consolidating their businesses.
Hexaware says it can still achieve its growth goal for 2026.
Hexaware shares rose 7.70% to Rs 574.20 on the BSE after its AI Day event.
JM Financial said Hexaware is targeting a 30% win ratio and pursuing deals worth more than $100 million.
Brokerage price targets ranged from Rs 500 by Jefferies to Rs 730 by CLSA.
Motilal Oswal Financial Services said delayed deal ramp-ups could support a stronger 2026 exit and better CY27 growth.
Nuvama said consolidation among 13 major clients is hurting 2026 business, while Hexaware remains confident in reaching 6–7% constant-currency growth.
- Who
- Hexaware and the brokerages covering its stock, including CLSA, Jefferies, JM Financial, and Nuvama.
- What
- Hexaware shares rose after its AI Day, while brokerages issued differing ratings and price targets.
- Where
- The share-price movement was reported on the BSE.
- When
- The shares rose during the trading session referenced in the report; the outlook discussed includes 2026 and CY27.
- Why
- Investors responded to Hexaware’s AI strategy and growth plans, although brokerages differed over how quickly those plans will produce revenue and bookings.
Bullish views
Cautious views
Growth outlook
Bullish views
Motilal Oswal Financial Services said growth may have been deferred rather than lost, with delayed deal ramp-ups and modernization programs potentially supporting a stronger 2026 exit and better CY27 starting point.
Cautious views
Nuvama said 2026 business is being hurt by consolidation at 13 of Hexaware’s top clients.
Stock valuation
Bullish views
Kotak Institutional Equities, CLSA, IIFL, Axis Capital, JM Financial, and Motilal Oswal Financial Services issued Buy or Add views with targets ranging from Rs 605 to Rs 730.
Cautious views
Jefferies maintained an Underperform rating with a Rs 500 target, while ICICI Securities retained a Hold rating with a Rs 580 target.
AI strategy execution
Bullish views
Brokerages identified emerging revenue opportunities in AI-for-AI, healthcare, market data, and professional services, alongside AI-led productivity initiatives.
Cautious views
JM Financial said converting these opportunities into material revenue and bookings remains an important factor to monitor.
Key facts
- Share-price move
- Hexaware rose 7.70% to a high of Rs 574.20 on the BSE.
- Win-ratio target
- JM Financial said Hexaware is targeting a 30% win ratio.
- Large deals
- Hexaware is identifying and aggressively pursuing deals worth more than $100 million.
- Highest cited target
- CLSA set a price target of Rs 730.
- Lowest cited target
- Jefferies maintained an Underperform rating with a target of Rs 500.
- JM Financial view
- JM Financial maintained an Add recommendation with a target of Rs 605.
- 2026 growth goal
- Nuvama said Hexaware remains confident of achieving 6–7% constant-currency year-on-year top-line growth in 2026.
Quotes
JM Financial
Brokerage that assessed Hexaware’s AI strategy and valuation
“New revenue pools are emerging across AI-for-AI, healthcare, market data, and professional services.”
businesstoday.in
Sources
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