Hexaware Technologies Limited is a global digital and technology services company with artificial intelligence ('AI') at its core. They leverage technology to deliver innovative solutions that help the customers in their digital transformation journey and subsequent operations. They embed AI into every aspect of the solutions and have created a suite of platforms and tools that allow the customers to adapt, innovate and optimize in this AI-first era. Company manages the business through six operating segments based on the industries they serve: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. The offerings encompass five broad services: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, which form the foundation for the offerings. They deliver their services through the AI-enabled digital platforms such as RapidX™ for digital transformation, Tensai® for AI-powered automation and Amaze® for cloud adoption. They serve customers across the Americas, Europe and Asia-Pacific (including India and Middle East) ('APAC'). . Company has a global delivery presence comprising 39 delivery centers supported by 16 offices spread across the Americas, Europe and APAC as of September 30, 2024. As of September 30, 2024, they had a team of 32,536 employees in 28 countries. Their presence is spread across major countries, nationalities, languages, time zones and regulatory zones. Company serves a diverse range of customers, including 31 of the Fortune 500 organizations. In the Financial Year 2023, they derived approximately 62% and nearly 83% of the revenue from operations from customers with over US$5,000 million revenues and over US$1,000 million revenues, respectively. They have a diversified presence across geographies: the Americas, Europe and APAC regions which also include the Middle East, Africa and Latin America, and across operating segments: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking and Travel and Transportation. The average tenure of the relationships with the top five, 10 and 20 customers for the Financial Year 2023 was approximately 15, 15 and 12 years. As per financial performance, Ajax Engineering Limited has posted total income / net profits of Rs 7,244.6 Cr / Rs 748.8 Cr (FY21), Rs 9,378.8 Cr / 884.2 Cr (FY22), Rs 10,389.1 Cr / Rs 997.6 Cr (FY23) and Rs 8,871.3 Cr / 853.3 Cr (30.09.24 FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 15.1 and average RoNW of 23.2% for last three fiscals. Issue is priced at a P/BV of 8.86 as per NAV of Rs 79.92/- as on 30.09.24. If we attribute latest earnings of FY23, FY24, TTM and annualised FY25 on equity post issue, then asking price is at a P/E of around 48.66, 43.13, 41.13 and 37.82 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, five lead managers are associated with this IPO, and have handled around 173 IPOs in last three fiscals. ( As on 05.02.25 ) As per financials, Ajax Engineering Limited has shown steady growth, RoNW is 19.4% and P/E is 52.95, 31.96, 29.59 and 35.62 respectively as per FY23, FY24, TTM and annualised FY25 earnings, so issue looks fully priced. Company is a leading concrete equipment manufacturer in India, which is niche business segment. GoI is very focused on infrastructure growth, so we may expect good demand for next couple of years. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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