Hexaware Technologies shares rally 5%; Motilal Oswal reiterates buy with target price of Rs 720

The brokerage’s positive stance follows Hexaware’s Investor Day, where the IT services company outlined its artificial intelligence strategy centred around two key themes — ‘Zero Friction Enterprise’ and ‘AI for Business’.

According to Motilal Oswal, more than 50% of Hexaware’s revenue is now AI-infused. However, the brokerage remains more focused on how the company can create deeper, bottom-up differentiation within its AI-led business.

‘Zero License’ and Tokenomics Emerge as Key Themes

Among Hexaware’s six ‘Zero’ pillars, Zero License and tokenomics emerged as particularly interesting and differentiated areas, according to the brokerage.
The Zero License strategy aims to replace clients’ traditional SaaS spending with AI-native capabilities owned by Hexaware. Meanwhile, the company is experimenting with eight commercial models linked to AI token costs, including fixed-cost and gain-sharing structures.

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Motilal Oswal noted that every new proposal from Hexaware now includes a token-based pricing option, highlighting the company’s efforts to develop new monetisation models around AI.

Growth Seen as Delayed, Not Lost

While Hexaware has lowered its CY26 revenue growth guidance, Motilal Oswal believes the weakness is largely a matter of timing rather than lost growth.The brokerage expects delayed deal ramp-ups, continued momentum in modernisation programmes, and healthy demand from the banking, healthcare, and manufacturing sectors to support a stronger exit from CY26 and provide a better base for CY27.

Motilal Oswal estimates constant-currency revenue growth of 6.4% in CY26 and 9.7% in CY27, driven by improving execution, large-account mining and expanding AI-led opportunities.

The company has also maintained its margin guidance despite continued investments in AI and talent.

With Motilal Oswal retaining its Rs 720 target, the brokerage sees significant room for further upside as Hexaware’s AI strategy, deal execution, and growth momentum gain traction.

Technical Indicators

From a technical perspective, Hexaware Technologies is trading above 7 out of 8 key simple moving averages (SMAs), indicating a broadly positive trend. The stock’s 14-day RSI stands at 40.6. While this remains below the neutral 50 mark, it is well above the oversold zone of 30, suggesting the stock is not currently in technically oversold territory.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)