Hexaware Technologies shares surge most in a year after AI day presentation; here is why

Shares of information technology company Hexaware Technologies rose as much as 7.7%, its biggest single day gain this year, to hit an intraday high of ₹574.20 on the BSE on Monday, August 24.

The stock came under buying interest after the company announced various initiatives it is undertaking at its AI day on Friday.

The company’s CEO said that it expects revenue to double by 2029 driven by AI led transformation.

Chief executive officer (CEO) R Srikrishna said that company expects revenue to touch $3 billion by 2029 from around $1.5 billion this will be driven by factors like AI-led transformation, West Asia expansion, growth in the technology vertical, and private equity partnerships.

Hexaware Technologies said that it is positioning AI to eliminate business friction and capture market share from traditional Software-as-a-Service (SaaS) providers.

Global investment firm Jefferies in a note said that Hexaware highlighted that AI is becoming central to client spending decisions, with over 50% of revenues already AI-infused.

Management expects AI-led deflation to be inevitable and is focusing on scaling new AI services, AI-based pricing models and sales capabilities to stay ahead. While AI opportunities are expanding across IT, business and trust services, execution and demand visibility remain key factors for delivering double- digit growth, Jefferies noted.

HSBC said that Hexaware introduced Zerovity and “Zero” suite of AI services with identified total addressable market (TAM) of $300 billion, to offset against AI deflation.

Management was more assertive on pursuit of large deals and sounded confident in managing token-linked pricing.

CLSA noted that Hexaware has identified six net new AI TAM opportunities - reducing tech debt, vulnerabilities, SaaS license costs and AI opportunities around data, governance and cybersecurity.

Its target is to grow by 10% year on year (YoY) by end of FY27 with no great medium-to long-term revenue growth visibility but with stable margins

As of 11:34 am, Hexaware Technologies shares traded 4.04% higher at ₹555, outperforming the NIFTY IT index which was up 0.5%.