Tech Mahindra Ltd. share price forecast

We hosted a session on 5G ecosystem with Mr. Manish Mangal, CTO & Global Business Head, 5G & Network Services, TechM to understand the 5G ecosystem and how it will benefit the Indian IT players.

Bajaj Finance Ltd (BAF) is the lending arm of Bajaj Finserv Ltd. It has a diverse set of product portfolio which is targeted towards meeting the changing consumer preferences.

Supreme Industries: We maintain BUY on Supreme Industries (SIL), keeping the TP unchanged at INR 2,630/share (SOTP-based). SIL EBITDA/APAT came in line with our estimates. Total plastic product volumes fell 15% QoQ to 109K MT on seasonally weak demand. Falling resin prices led to dealers destocking, impacting sales. Blended NSR rose 2/8% QoQ/YoY to INR 203/kg. However, blended unitary EBITDA fell 18/21% QoQ/YoY on inventory losses (amid falling resin prices) and low utilisation (QoQ). In FY23, it expects to deliver 15% overall volume growth with 15% operating margin. SIL expects recent cool-off in resin prices (which is getting passed on) to boost demand and lead to inventory loss in Q2FY23. Navin Fluorine International: We retain our BUY rating on NFIL, with a target price of INR 4,900 on the back of (1) earnings visibility, given long-term contracts; (2) tilt in sales mix towards high-margin high-value business; (3) capacity expansion led growth; and (4) strong R&D infrastructure. EBITDA/APAT were 11/3% below our estimates, owing to a 15% fall in revenue, offset by lower-than-expected raw material cost, lower-than-expected depreciation and higher-than-expected other income. Sonata Software: We maintain our BUY rating on Sonata, following an in-line growth in the IT services segment (IITS, +3.9% QoQ CC) and better-than-expected margin performance. The sell to Microsoft portfolio (ISV, +4.5% QoQ) is driving growth while the sell with Microsoft (Dynamics) was soft. The company remains optimistic about the Microsoft opportunity (product Engg + dynamics 365) and is confident of delivering ~15-20% YoY growth. The impacted travel vertical is set to recover with...

We recommend a Buy the stock for a target price of Rs 1,330 implying an upside of 11% from CMP

CreditAccess Grameen: CreditAccess Grameen (CREDAG) continued to deliver an all-round strong performance, with earnings ~8% ahead of our estimates. Portfolio stress has largely receded, with PAR-0 now at 3.6% (from peak of 30.6% in Q1FY22) and GNPA for the consolidated entity at 3.6%, indicating near-normalised credit costs from FY23. Loan growth remained strong (+22.2% YoY), driven largely by the MFI book (including MMFL). Net new customer additions were positive after several quarters and are likely to gain further traction, although average exposure per borrower may remain elevated. The management guidance of 24-25% loan growth appears conservative to us as we believe the company is well poised for market share gains, albeit with back-ended growth on account of the implementation of new MFI guidelines. We tweak our FY23E/FY24E earnings estimates and maintain BUY, with a revised TP of INR963 (2.8x Mar-24 ABVPS). Our implied multiple reflects CREDAG's high cross-cycle potential RoE and a very conservative approach to an inherently risky business. Brigade Enterprises: Brigade Enterprises Ltd (BEL) reported resilient presales of 1.5msf (-10%/+37.7% YoY/QoQ), valued at INR 10.3bn (+1%/+50.2% YoY/QoQ), backed by decent response from Brigade Cornerstone Utopia and Brigade EI Dorado. The average realisation came in at INR 6,853/sq.ft. (+11.8%/+9.1% YoY/QoQ). Retail segment consumption exceeded the pre-COVID level in Q4FY20. The hospitality segment witnessed robust recovery despite the COVID-19 waves, with occupancy and ARR at 94%/72% of the pre-COVID level. BEL is evaluating options to monetise this segment. Given BEL's strong cash position of INR 15.8bn, robust business development pipeline (added ~8.5mn sq.ft. of land in...

CreditAccess Grameen: CreditAccess Grameen (CREDAG) continued to deliver an all-round strong performance, with earnings ~8% ahead of our estimates. Portfolio stress has largely receded, with PAR-0 now at 3.6% (from peak of 30.6% in Q1FY22) and GNPA for the consolidated entity at 3.6%, indicating near-normalised credit costs from FY23. Loan growth remained strong (+22.2% YoY), driven largely by the MFI book (including MMFL). Net new customer additions were positive after several quarters and are likely to gain further traction, although average exposure per borrower may remain elevated. The management guidance of 24-25% loan growth appears conservative to us as we believe the company is well poised for market share gains, albeit with back-ended growth on account of the implementation of new MFI guidelines. We tweak our FY23E/FY24E earnings estimates and maintain BUY, with a revised TP of INR963 (2.8x Mar-24 ABVPS). Our implied multiple reflects CREDAG's high cross-cycle potential RoE and a very conservative approach to an inherently risky business. Brigade Enterprises: Brigade Enterprises Ltd (BEL) reported resilient presales of 1.5msf (-10%/+37.7% YoY/QoQ), valued at INR 10.3bn (+1%/+50.2% YoY/QoQ), backed by decent response from Brigade Cornerstone Utopia and Brigade EI Dorado. The average realisation came in at INR 6,853/sq.ft. (+11.8%/+9.1% YoY/QoQ). Retail segment consumption exceeded the pre-COVID level in Q4FY20. The hospitality segment witnessed robust recovery despite the COVID-19 waves, with occupancy and ARR at 94%/72% of the pre-COVID level. BEL is evaluating options to monetise this segment. Given BEL's strong cash position of INR 15.8bn, robust business development pipeline (added ~8.5mn sq.ft. of land in...

Q4 revenue growth in line at 4.9% QoQ USD, spearheaded by the enterprise segment; TCV robust at US$ 1.01bn

all companies in NIFTY IT Index, several mid-cap, small cap IT firms and new age internet players. Management commentary across companies indicate that strong demand environment is expected to continue over medium term and revenue growth is no longer contingent on winning large deals. Pricing environment has also improved. Additionally, companies are doing aggressive fresher hiring resulting in pyramid balancing which will provide considerable margin tailwinds in FY23....