Hexaware Technologies' shares rallied 5% on Monday after Motilal Oswal reiterated its "Buy" rating on the stock with a target price of Rs 720, a level the brokerage says implies roughly 35% upside from prevailing prices.

The domestic brokerage's renewed endorsement is anchored in the IT services company's artificial intelligence (AI) strategy. Motilal Oswal drew particular attention to two elements of that strategy: Hexaware's "Zero License" approach and its token-based pricing models.

'Zero License' and Tokenomics Emerge as Key Themes

Motilal Oswal's note positions Hexaware's "Zero License" model and tokenomics — pricing tied to usage or consumption rather than traditional flat licensing — as key themes in the company's AI-led commercial evolution. The emphasis on consumption-linked pricing stands out in an industry where services revenue has conventionally been billed under time-and-materials or fixed-price contracts; token-based models tie what clients pay more directly to how much they actually use an AI-led solution.

Growth Seen as Delayed, Not Lost

On the demand environment, the brokerage characterized Hexaware's deal ramp-ups as delayed rather than lost. In industry parlance, a ramp-up is the phased pick-up in execution and billing on an already-signed contract, so a delayed ramp pushes revenue into later periods without the underlying deal being cancelled. Motilal Oswal expects the combination of these deferred ramp-ups and AI-led opportunities to support stronger growth in CY27 (calendar year 2027) — a horizon that extends beyond the near term and rests on the deferred ramp-ups converting into revenue alongside AI-led opportunities.

Company Background

Hexaware Technologies is a Navi Mumbai-headquartered Indian IT services company founded in 1990, serving clients across verticals including banking and financial services, healthcare, and travel and transportation. The Bain Capital-backed company returned to Indian stock exchanges in February 2025 through an initial public offering — an offer-for-sale of about Rs 8,750 crore that was reported as the largest IPO by an Indian IT services company — ending more than a decade of private ownership that followed its delisting in 2013. As a recently relisted company, Hexaware has a shorter public trading history than long-listed Indian IT peers, and brokerage coverage adds to the publicly available analysis investors can draw on.

Brokerage ratings and target prices reflect the views of the issuing analysts and do not guarantee future performance.

Source: Economic Times Markets (report by Ritesh Presswala for ETMarkets)