CLSA is excited by Hexaware Tech's AI strategy, but others aren't

Shares of Hexaware Technologies gained over 5% on Monday, August 24, after the company held its AI Day 2026 on August 21 in Chennai, centred on its artificial intelligence (AI) strategy.

For the first time, Hexaware Tech's CEO R Srikrishna disclosed that over 50% of the company's revenue (and work) are already AI-infused.

Some reports stated that the company's said its revenue ambition is of $3 billion by 2029, but this was not shared by the management.

The company has identified net new AI total addressable market (TAM) opportunities of over $300 billion. For example, it is targeting the replacement of software as a service (SaaS) worklows with AI-native, client-owned solutions.

As enterprises deploy AI agents, someone needs to onboard, monitor, govern and manage those agents.

Hexaware Tech argues that roughly 60% of the failed AI POCs are due to data problems.

Brokerages

Brokerages were mixed on the Hexaware Tech stock with Jefferies having an "underperform" rating, HSBC having a "hold" recommendation and CLSA having an "outperform" rating.

Jefferies

The brokerage has an "underperform" rating with a target price of ₹500 per share, which is 6% below its previous closing price.

It said at its AI Day, Hexaware Tech highlighted that AI is becoming central to client spending decisions, with over 50% of revenues already AI-infused.

The 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 the AI opportunities are expanding across IT, business and trust services, execution and demand visibility remain key factors for delivering double-digit growth, Jefferies said.

HSBC

HSBC has a "hold" rating and a target price of ₹575 per share, which is an 8% upside from its previous closing price.

It said Hexaware Tech introduced Zerovity and "Zero" suite of AI services and identified TAM of over $300 billion to offset against AI deflation.

The management was more assertive on pursuit of large deals and sounded confident in managing token-linked pricing, strong client profile and capabilities, it said.

However, HSBC added that it maintains its "hold" recommendation due to near-term weakness in business.

CLSA

The brokerage has an "outperform" rating and a target price of ₹730 per share, which is an upside of 37% from its previous closing price.

It said the company has identified six net new TAM opportunities -- reducing tech debt, vulnerabilities, SaaS licence costs and AI opportunities around data, governance and cybersecurity.

Its target is to grow by 10% by FY27-end with no great medium-to long-term revenue growth visibility but with stable margins.

CLSA said it maintains its rating on this challenger as it has delivered a low double-digit organic revenue compound annual growth rate (CAGR) over the last 12 years under the current CEO, despite impact of deflation in its core IMS business led by the shift to cloud.

Stock reaction

Shares of Hexaware Tech were trading 5.7% higher at ₹562.55 apiece at 9.25 am on Monday. The stock has gained 1.9% in the past month and 25.8% this year, so far.

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