The 49 reports from 16 analysts offering long term price targets
for Tech Mahindra Ltd. have an average target of 921.92. The consensus estimate
represents a downside of -6.01%
from the last price of 980.85.
Rising adoption of smartphones, high internet speed and social distancing (due to Covid-19) has changed consumer behaviour. Consumers now prefer to transact (buy a product) virtually over the smartphone via an app instead of physical transaction. This has led to virtualisation of business models. In addition, to keep business up and running in a work from home scenario, technology is gaining traction. As a result, new age technologies like cybersecurity (to protect business from work from home scenario), app development (to help customer transact virtually) and Cloud (to enable...
The company is expected to see acceleration in revenue growth led by large deal pipeline, digital acceleration and improving IT spend in communication. Further, in the long term, we believe TechM will be a key beneficiary of 5G opportunities. This, coupled with an improving margin trajectory led by cost rationalisation and reasonable valuation prompt us to be positive on the stock. Hence, we maintain our BUY recommendation on the stock with a...
Tech Mahindra's (TML) analyst day yesterday delivered the following takeaways: (1) a pick-up in overall revenue growth to high single digits in FY22 with enterprise side leading with a double-digit number and communication vertical growing in mid-high single digits with no material revenue from 5G. This is on the back of higher large deal pipeline and deal flow. The medium term commentary hints at an acceleration as 5G revenues kick in significantly, not just on the communication service provider (CSP) side but also on the enterprise side. Echoing the views of its peers, TML believes that the acceleration could potentially be a multiyear phenomenon (2) reiteration of EBIT margin guidance of 15% for FY22 with a focus on driving greater synergies in portfolio, reducing subcontractor charges, greater...
The company's revenue increased 2.9% QoQ to Rs. 9,372cr in Q2FY21 (+3.3% YoY) driven by IT segment rising by 0.6% QoQ to Rs. 8,419cr (+2.4% YoY), accompanied by BPO segment increasing by 28.8% QoQ to Rs. 953cr (+12.7% YoY). Demand revival came across multiple segments, as customers accelerated their pace of digital transformation. In USD terms, revenue was up 4.8% QoQ to USD 1,265mn (+2.9% QoQ in CC), owing to increase in Technology (+13.3% QoQ), BFSI (+9.6%) and Retail segment (+7.8%). While Communications (+3.2% QoQ), and Manufacturing segment (0.5%) segments remained lackluster. However, management expects manufacturing...
We maintain our Buy rating on Tech Mahindra (TechM) with a revised PT of Rs. 1000. Performance was better than expected on all parameters. TechM impressed with strong margin expansion, healthy FCF generation and pickup in deal TCVs. Management expects double digit growth over next couple of years on the back of...
Margins upgraded; 5G B2C and Rakuten could drive further revenue upgrades Tech Mahindra's (TML) 2QFY21 performance was ahead of expectation, especially on EBIT margin. Commentary on margin in FY21 has shifted quite a bit over the last few quarters. In December 2019, at the analyst meet, TML was targeting ~15% margin in FY21. That was dropped when the pandemic hit and was shifted as the goal for FY22. In light of a significant margin surprise in 2QFY21 at 14.2% (+410bps QoQ against our estimate of +50bps) and commentary that this could be sustained despite salary and travel cost increases, we have raised our estimates materially for FY21-FY23. While 2Q large deal TCV has been a tad disappointing, we are comforted by commentary around...
TECHM reported revenue growth of 2.9% QoQ (DE: 2.1%) led by strong growth in Hi-Tech/BFSI/Retail Vertical (14%/9.5%/7.5% QoQ). EBIT margins improved by 410bps to 14.2% (DE: 10.7%) led by easing of supply side factors (160bps), higher off-shoring, improved utilization and lower sub-con (160bps) gain and savings on visa cost (70bps). TCV signings were strong at US$421mn up 45% QoQ, but still down 13% on TTM basis. The management expects recovery in Enterprise vertical starting Q3 and improved traction from Network side in...
TechM reported strong revenue growth of 2.9% QoQ CC (Ple:1.9%, Cons:2.0%) & $ revenue growth of 4.8% (Ple:3.1%, cons: 4%) at US$1265.4mn. BPO saw strong growth rebound of 31.1%(contributing to 53% of incremental...
Tech Mahindra reported better than expected results in Q2 FY21 in all the terms. Revenue for the period of Q2 FY21 stood at Rs. 9,371.8 cr grew by 4.8% QoQ and 2.9%QoQ in CC terms. Operating margin reported a marginal growth of 380bps and stood at 18.3%.
We maintain our Buy rating on Tech Mahindra (TechM) with a revised PT of Rs. 910, given it is trading at a sharp discount to its large peers. Revenue growth in Q2 would be driven by strong recovery in BPO business,...
Initiate coverage on Tech Mahindra (Tech M) with Buy rating and price target of Rs. 850, given potential 5G opportunity and anticipated rise in margins. Our positive stance underpins company's comprehensive capabilities in telecom...
While valuation looks expensive in the short-term, we remain bullish on TechM's long-term outlook, with strong growth seen in enterprises segment and gradual recovery in communication vertical. We retain our BUY rating on the stock with a TP of Rs. 779 on 15x FY22E adj. EPS. Decent quarter despite challenging time Company recorded revenue growth of 5.2% YoY to Rs. 9,106cr (vs. Rs. 8,653cr in Q1FY20). The increase in revenue driven by growth in IT segment (91.9% of total revenue) 6.5% YoY to Rs. 8,367cr, which was partially offset by declined in BPO...
The company reported deal wins worth $300 million during the quarter under review, with $100 million worth of communication contracts and $190 million in enterprise space. Manufacturing was the worst hit vertical, with revenue from the segment declining 11%...
Tech Mahindra reported better than expected results in Q1 FY21 in all the terms. Revenue for the period of Q1 FY21 stood at Rs. 9,106.3 cr decline by 4% QoQ and 6%QoQ in CC terms. Operating margin reported a marginal growth of 11bps and stood at 14.3% aided mainly by INR depreciation
Communication opportunities to fructify, drive growth in long run The current quarter revenues were impacted by challenges on network side customer deferring projects, Comviva seasonality, supply side challenges (especially in BPO), pricing pressure. Going forward, we expect TechM to see improved traction led by easing of supply side pressure, large deal ramp ups and growth in communication & enterprise side. We believe the company in the longer term could see improved spending on network operations, 5G, Cloud, AI, customer experience on communication side....
