Re: Hexaware Tech

Hi all

Will appreciate anyone tracking Hexaware Tech, letting me know whats happening with this company. It has been at the same level (130s) for a long time..even thru the dip...any insight will help.

Thanks

Hi Harmads

For Hexaware the down fall started much earlier than the market fall of May. After the first quarter results ending march 206 were announced the stock tanked thanks to the unimpressive results compared to the previous quarters. The sales fell from 98.7 Cr. in the previous quarter to 87 Cr. The EPS also was less compared to the previous two quarters.

Technically the stock tanked on the 4th of April and then went on to make lower pivots.
The stock made a bottom at 118 and started rising on some good news.
Technically the stock is still in a bearish mood. It has made a lower pivot in the weekly too. Currently the MA(5) is above the Ma(20) but below the long term averages MA(50) and MA(100). The trend line has just been broken. It is approaching a strong resistance area around 137. Just like the Nifty it is too early say for sure where the stock is heading.
The movement of the stock in the near future would depend largely on the market movement. The question on the market still remains – Are we in a intermediate bear trend or we would go into a primary bear trend. The divergences in the Monthly charts are not really encouraging. We would have to wait for some time more to get the confirmation.

Hexaware as such is one of the strong madcap IT socks. It would do well in the long run after the current indecision of the market is over. The recent news for the stocks is as follows.

News Dated 1st June.
Hexaware Technologies Ltd and SAS on May 29, 2006 has announced a strategic technology and marketing alliance. Through the alliance, SAS and Hexaware will offer comprehensive business intelligence (BI) and analytical software solutions globally.
Read more at
http://www.domain-.com/companies/companies_h/hexaware_technologies/20060601_tie-up.html
News dated 26th June
IT and BPO services provider Hexaware Technologies Ltd on Monday announced a partnership with Mu Sigma, a US-based service provider with expertise in statistics and econometric services, to support its business intelligence and data warehousing practices with analytical services.

Read more at
http://economictimes.***************/articleshow/1682115.cms

Hope this helps

Karthik

Karthik,
Thats a pretty comprehensive analysis , and what I like abt it is the dual approach u followed (FA plus TA), which I have been advocating on this forum

Out of curiousity though, whats is your source of the sequential growth figs (marked red above) ..... I am not able to reconcile with the figs in co's own release (see http://www.hexaware.com/fileadd/Press-Release-Q1-06.pdf
which suggests an altogether different scenario. Or am I missing something ??

ICICI Research site gives comparison only with Q1/05 , whereas Myiris.com Financials page does not go more recent than 03/2004 !
Thanks

AGILENT

Thanks Karthik..

for that very comprehensive analysis.Your comments are always valuable..

I was quite perplexed at what was happeneing with the stock, since the fundamentals of the company were strong and there was no adverse news about the company..

best regards

Agilent

Thanks for the kind words. My approach has always been Techno-fundamental . This way we dont bet on the wrong horses...

Yes the company report provides a different view. I went by the results (unaudited) reported in the BSE site. I feel more confident about these ones than the ones posted on the company sites. Here is the BSE link... Quite interesting Isn't it?

http://www.bseindia.com/qresann/result.asp?scripcd=532129&scripname=Hexaware+Techn ologies+Ltd&quarter=MQ2005-2006&type=49

regards

Karthik

this TA/FA mode of analysis is well termed by John Bollinger as "Rational Analysis".

Karthik
My friend you amaze me ... how can u rely on undated Unaudited results from a third party, in preference over dated, Audited results 'straight from the horse's mouth' ??

Pray clarify

Rgds
AGILENT

Agilent

The reasons is very simple. The first party has every reason to dress up his accounts. The third party especially when they are the stock exchanges have no need to manipulate or dressup any accounts. Please check NSE also. They are also giving the results same as BSE.

The stock tanked starting from early april. Maybe more people ...like me ...rely on the exchanges than the horse itself

regards

Karthik

So from which source do you think the BSE / NSE get company results, as a matter of practice ?

AGILENT