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Motilal Oswal Report
Hexaware Technologies Ltd.’s artificial intelligence strategy, particularly its Zero License proposition and token-based pricing models, has caught the attention of Motilal Oswal Financial Services, which reiterated its ‘Buy’ rating on the IT services company with a target price of Rs 720 per share, based on 25 times CY27E earnings per share, implying a potential upside of 35%, from the current levels.
The brokerage’s view follows Hexaware Technologies’ Investor Day, where the company laid out its AI strategy built around two key themes — the ‘Zero Friction Enterprise’ framework comprising six Zero pillars and ‘AI for Business’, which focuses on solving previously difficult problems and expanding into adjacent markets.
Motilal Oswal said Zero License and tokenomics emerged as the two most interesting and differentiated themes among the six pillars presented by the company.
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MOSL’s valuation and view
Although Hexaware has lowered its CY26 revenue guidance, management commentary suggests that growth is largely being deferred rather than lost.
Delayed deal ramp-ups, continued momentum in modernisation programs, and healthy growth across banking, healthcare, and manufacturing should support a stronger exit in CY26 and provide a better starting point for CY27.
The brokerage estimates a constant currency revenue growth of 6.4%/9.7% YoY for CY26/CY27, supported by improving execution, continued large-account mining, and healthy AI-led opportunities. The company also maintained its margin guidance despite continued investments in AI and talent.
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