Is Hexaware Technologies Overvalued or Undervalued Right Now?
- September 1, 2026
- Posted by: Kunal Singla
- Category: Market
Hexaware Technologies CMP Rs 551.50 (31 Aug 2026), down 0.59%. PE 25.24 vs industry PE 19.14. ROE 20.02%. 52W range Rs 400.20 to Rs 807.75.
Quick Answer
Hexaware Technologies trades at a price to earnings ratio of 25.24 against an industry average of 19.14, which puts the stock close to fair value on a simple multiple basis rather than clearly overvalued or undervalued. The company’s 20.02% return on equity and Rs 109.85 book value per share fit broadly within its sector’s range. Whether Hexaware Technologies is overvalued or undervalued right now is less about a wide valuation gap and more about how its growth and margins evolve from here.
Is Hexaware Technologies overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 551.50, the stock trades roughly 31.7% below its 52 week high of Rs 807.75 and about 37.8% above its 52 week low of Rs 400.20.
Hexaware Technologies’s share price moved down 0.59% in Monday’s session to Rs 551.50, against a market capitalisation of Rs 33,896 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple, and works through the full Hexaware Technologies overvalued or undervalued picture step by step.
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Hexaware Technologies Overvalued or Undervalued: Valuation Metrics
| Valuation Metric | Hexaware Technologies |
|---|---|
| CMP (31 Aug 2026) | Rs 551.50 |
| Market Cap | Rs 33,896 Cr |
| P/E Ratio | 25.24 |
| Industry P/E | 19.14 |
| P/B Ratio | 5.05 |
| Sector Average P/B (IT services) | 5.61 |
| Return on Equity (ROE) | 20.02% |
| Sector Average ROE (IT services) | 20.89% |
| EPS (TTM) | Rs 21.98 |
| Book Value per Share | Rs 109.85 |
| Debt to Equity | 0.10 |
| Dividend Yield | 2.07% |
| Sector Average Dividend Yield (IT services) | 3.37% |
| 52 Week High / Low | Rs 807.75 / Rs 400.20 |
The headline number here is the price to earnings ratio. At 25.24, the Hexaware Technologies PE ratio is 1.32 times the industry average of 19.14. Measured against its IT services sector peers, the gap widens further on other measures too: a P/B of 5.05 against a sector average of 5.61, and an ROE of 20.02% against a sector average of 20.89%. This table alone is not enough to settle whether Hexaware Technologies overvalued or undervalued is the fair read, but it is the starting point for the rest of this analysis.
Is Hexaware Technologies Overvalued or Undervalued Based on Its P/E Ratio?
Based on the P/E ratio alone, Hexaware Technologies looks fairly valued. The stock’s PE of 25.24 sits close to the industry average of 19.14, which suggests the market is pricing the business roughly in line with its sector rather than at a premium or a discount. That leaves the question of Hexaware Technologies overvalued or undervalued more dependent on its growth trajectory than on the PE ratio itself.
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Hexaware Technologies’s Financial Growth and Profitability
Hexaware Technologies’s revenue moved from Rs 12,049.30 crore in FY2024 to Rs 13,818.70 crore in FY2025, a change of 14.7%. Net profit grew from Rs 1,174.00 crore to Rs 1,368.30 crore over the same period, a swing of roughly 16.6%.
The Hexaware Technologies share price has moved alongside this earnings trend, which is part of why the stock now trades at 1.32 times the industry PE of 19.14 rather than a flat multiple.
These growth numbers feed directly into the Hexaware Technologies overvalued or undervalued question, since a rich multiple is easier to justify when profit growth is accelerating than when it is flat or falling.
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Hexaware Technologies Overvalued or Undervalued: The Case for Overvalued
Before getting to the bullet points, it helps to frame the Hexaware Technologies overvalued or undervalued question in terms of what would make the bear case right.
- Valuation premium: The stock’s PE of 25.24 is 1.32 times the industry average of 19.14.
- High price to book: A P/B of 5.05 means the market is paying several times book value of Rs 109.85 per share.
- Limited margin of safety: At Rs 551.50, the stock is only 31.7% below its 52 week high of Rs 807.75, leaving less room for error if earnings disappoint.
Hexaware Technologies Overvalued or Undervalued: The Case Against It
The other side of the Hexaware Technologies overvalued or undervalued debate rests on the quality metrics below.
- High return on equity: ROE of 20.02% against a sector average of 20.89% reflects efficient use of shareholder capital.
- Low leverage: A debt to equity ratio of 0.10 gives Hexaware Technologies a comparatively strong balance sheet.
- Reasonable income: A dividend yield of 2.07% offers some cushion while the market decides on the growth story.
- 52 week range context: At Rs 551.50, the stock is 37.8% above its 52 week low of Rs 400.20, showing it has already found some support at lower levels.
Verdict: Is Hexaware Technologies Overvalued or Undervalued Right Now?
On balance, Hexaware Technologies looks fairly valued rather than clearly overvalued or undervalued. Its PE of 25.24 sits close to the industry average of 19.14, and its 20.02% ROE and other ratios do not point to a significant mispricing either way. The more useful question for investors from here is less about the current multiple and more about whether earnings growth accelerates or slows. On the specific question of Hexaware Technologies overvalued or undervalued, the current evidence does not lean strongly either way.
What Could Change Whether Hexaware Technologies Is Overvalued or Undervalued?
Two broad scenarios could shift this valuation call on Hexaware Technologies in either direction. On the upside, an improvement in return ratios or growth that pushes the stock’s PE of 25.24 toward a premium over the industry average of 19.14. On the downside, a deterioration in the numbers that pulls the PE below the industry average of 19.14 instead. Investors watching the Hexaware Technologies share price over the next few quarters should track whether reported ROE holds near 20.02% and whether the PE gap versus the industry average of 19.14 widens or narrows, since both will matter more to the eventual answer on Hexaware Technologies overvalued or undervalued than the current price point on its own.
Conclusion
Hexaware Technologies’s numbers point to a stock that is fairly valued on headline multiples. Investors tracking the Hexaware Technologies share price should watch whether earnings growth can keep pace with the current PE of 25.24, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. For anyone still weighing Hexaware Technologies overvalued or undervalued as a one-line takeaway, the multiples say fairly valued while the return ratios offer partial support for the current price. This article is for informational purposes only and is not investment advice.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Hexaware Technologies Overvalued or Undervalued: FAQs
Is Hexaware Technologies overvalued or undervalued right now?
Ans. Based on a PE ratio of 25.24 against an industry average of 19.14, Hexaware Technologies currently looks fairly valued on relative valuation. Its 20.02% ROE is an important part of the Hexaware Technologies overvalued or undervalued picture alongside the PE ratio.
What is Hexaware Technologies’s current PE ratio?
Ans. Hexaware Technologies’s price to earnings ratio stands at 25.24, compared with an industry average PE of 19.14. This PE gap is the main input into the Hexaware Technologies overvalued or undervalued call made in this article.
What is Hexaware Technologies’s return on equity?
Ans. Hexaware Technologies generates a return on equity of 20.02%, against a sector average of 20.89% among IT services peers.
What is Hexaware Technologies’s 52 week high and low?
Ans. Hexaware Technologies’s 52 week high is Rs 807.75 and its 52 week low is Rs 400.20. The stock currently trades around Rs 551.50, roughly 31.7% below its high.
Does Hexaware Technologies have high debt?
Ans. Hexaware Technologies carries a debt to equity ratio of 0.10, which is low for its sector.
What is Hexaware Technologies’s dividend yield?
Ans. Hexaware Technologies offers a dividend yield of 2.07% at the current share price.
Is Hexaware Technologies a good stock to buy at current levels?
Ans. Hexaware Technologies’s current valuation suits investors who agree with the fairly valued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.
What is Hexaware Technologies’s price to book ratio?
Ans. Hexaware Technologies trades at a price to book ratio of 5.05, compared with a sector average of 5.61 among IT services peers.
What is the simplest way to summarise Hexaware Technologies overvalued or undervalued?
Ans. On PE alone, Hexaware Technologies is fairly valued against its industry average of 19.14. Layer in the 20.02% ROE and the answer to Hexaware Technologies overvalued or undervalued becomes more nuanced than the headline multiple suggests on its own.
