Equity Alert: JP Morgan says Hexaware mgmt changes likely negative

[K.Karthik Raja]

Equity Alert: JP Morgan says Hexaware mgmt changes likely negative
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Equity Alert: JP Morgan says Hexaware mgmt changes likely negative
BANGALORE--1:25PM--JP Morgan today said investors are unlikely to
be
enthused by the management change at Hexaware Technologies, and added
that it
is likely to be perceived as a negative.
At 1:24PM, Hexaware shares were down 1.5% at 60.60 rupees.
Monday, in a surprise development, Hexaware announced a management
change
with a new Chief Executive Officer P.R. Chandrasekar, an ex-Wiproite,
and a new
Chief Financial Officer Prateek Aggarwal, who was earlier with HCL
Technologies.
"While one could argue that this is a step to broad base
management, we
believe this step is an acceptance of the fact that Hexaware's current
management team has been unable to execute on taking the company to
the next
level," JP Morgan said.
The investment bank said the new management team could lead to
more changes
in the mid-level, a potential disruption for the firm's existing
business and a
further possibility of losing business.
JP Morgan has a neutral rating on the stock with a December 2008
price
target of 80 rupees.