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Jan 04, 2013

Value Shares: Pick of the Week

Hexaware Technologies in Consolidation Mode
image Hexaware Technologies 

CMP
BSE 90
NSE 90

52-week Low - High 78-142

Target 105

The stock seems to be in a consolidation mode after some weakness in
the past few weeks and looks set for a rebound. Analysts think the
worst may be over for the software services provider, which cut its
fourth quarter revenue guidance in December, mainly citing impact from
Hurricane Sandy and some changes in projects with a top client.

The company now sees revenue for the December quarter at USD 92
million, which is less than an earlier guidance of US$ 94.7
million-USD 96.5 million. This includes the impact of US$ 450,000 on
account of Hurricane Sandy in the eastern coast of the United States.
Profit margins are also likely to be hit.

The stock trades at a PE multiple of about 8 percent. The cash-rich
company is also reportedly considering acquisitons and a stake sale.

The industry group NASSCOM has predicted 11-14 percent growth for the
IT sector for the fiscal 2013. However, the industry remains divided
over the forecast.