599.40 -15.90 (-2.58%)
NSEJul 16, 2020 15:31
The 53 reports from 17 analysts offering long term price targets for Tech Mahindra Ltd. have an average target of 654.53. The consensus estimate represents an upside of 9.20% from the last price of 599.40.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-06-01||Tech Mahindra Ltd.||Ashika Research||543.55||543.55 (10.28%)||Accumulate|
|2020-05-14||Tech Mahindra Ltd.||Hem Securities||510.55||600.00||510.55 (17.40%)||Target met||Hold|
Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra has recently. Company provides IT Services such as solution integration, application development and management, consulting, application management, infrastructure management, and revenue management services.Compay also offer Research and Development services. It provides technological solutions such as software development, testing, hardware development, network offering etc to leading telecom equipment manufacturers...
|2020-05-12||Tech Mahindra Ltd.||Geojit BNP Paribas||510.55||585.00||510.55 (17.40%)||Target met||Buy|
Geojit BNP Paribas
Q4FY20 consolidated revenue increased 6.7% YoY to Rs. 9,490cr, however was marginally down on QoQ basis (-1.7%). In USD terms, overall revenue declined 4.3% QoQ to USD 1,295mn (-3.3% QoQ in constant currency terms) despite continued growth in Digital revenues (+2.0% QoQ). On segment levels, BPO business revenue came in at Rs. 822cr (+4.8% YoY, pace of growth impacted by the COVID-19 pandemic), while IT business revenue grew 6.9% YoY to Rs. 8,668cr. EBITDA fell 31.0% YoY to Rs. 1,348cr (-13.8% QoQ), as margin contracted 420bps on YoY to 14.2% (-200bps QoQ)....
|2020-05-06||Tech Mahindra Ltd.||SMC online||516.35||516.35 (16.08%)||Results Update|
Tech Mahindra Ltd.s quarterly profit fell more than estimated as Covid-19 pandemic stalled economic activity and spending across the globe. Tech Mahindra for the quarter ended Mar 2020 reported a revenue (in US dollar terms) of USD 1294.6 million, a fall of 4.3% QoQ. But on constant currency terms the revenue de-growth was...
|2020-05-04||Tech Mahindra Ltd.||ICICI Securities Limited||499.95||630.00||499.95 (19.89%)||5.11||Buy|
ICICI Securities Limited
In the near term (at least for the next two quarters), the company is expected to face multiple headwinds in terms of pricing pressure, ramp down in projects, lower growth in Comviva and impact on BPS business. Further, on the enterprise side, TechM is expected to see pressure on retail and manufacturing business. In addition, the enterprise side is exposed to more of discretionary spend (related to digital), which will also put pressure on revenue growth. However, we believe the company in the longer term could see improved spending on network operations, 5G, Cloud, AI and customer...
|2020-05-04||Tech Mahindra Ltd.||Axis Direct||502.45||570.00||502.45 (19.30%)||Target met||Hold|
Tech Mahindra Ltd (TECHM) reported overall weak set of numbers in Q4 FY20. Its revenue stood at Rs. 9,492 crs up 7% YoY and declined by 2.11% QoQ. Operating profit also declined by 14% QoQ to Rs. 1,348crs and operating margin declined by 200 bps to 14.2% (vs) due to onetime debt provision.
|2020-05-04||Tech Mahindra Ltd.||IDBI Capital||502.45||537.00||502.45 (19.30%)||Target met||Accumulate|
TECHM's Q4FY20 result was a miss to our forecast operationally. Revenue decline of 3.3% QoQ in CC (-4.3% in US$) was a miss to our forecast. Further, EBIT margin decline was much steeper at 220bps QoQ to 10% vs. our forecast of -55bps. Adj. EPS was inline aided by higher other income and lower ETR. In Q4FY20, TECHM has secured large deals with TCV of US$513 mn (US$174 mn in...
|2020-05-04||Tech Mahindra Ltd.||Nirmal Bang Institutional||502.45||476.00||502.45 (19.30%)||20.59||Sell|
Nirmal Bang Institutional
Tech Mahindra's (TML) 4QFY20 disappointed with 3.3% QoQ decline in revenue in CC terms (4.4% in USD), below our growth estimate of 1.3% (0.2% in USD). 40% of the decline has come from the BPS business (~9% of revenue, 15% decline QoQ in USD). EBIT margin at 10% was 240bps below our estimate and 220bps lower QoQ. At its analyst meet (Update)TML was guiding towards high single digit USD revenue growth in FY21 and mid-teen EBIT margin. Covid-19 has meant that FY21 would be a year of mid-single digit USD revenue decline and ~10% EBIT margin (thanks to a cushion of 300-450bps due to lower travel costs, lower salaries for mid-senior employees, lower real estate costs, cut in subcon expenses, etc offsetting price decline). Its 122% YoY growth in TCV...
|2020-05-01||Tech Mahindra Ltd.||Motilal Oswal||546.25||590.00||546.25 (9.73%)||Target met||Neutral|
Management attributed ~150 bp of this decline to the COVID-19 crisis, with equal impact witnessed in terms of disruption on the supply side (in BPS) and demand Weakness in Comviva and reduced volumes due to some large deals transitioning to the steady state are other factors attributed to the poor Barring BFSI among the verticals and APAC among the geographies, other segments reported sharp revenue decline. Given the higher client concentration, especially within the Communications segment, we expect more intense pricing pressure in the Beyond the near term (three to six months), we expect a large number of enterprise clients to ramp-up their digital spends as social distancing norms globally accelerate the shift into the digital space. Management witnessed in terms of disruption on the supply side (in BPS) and demand side (in segments reported sharp revenue decline.
|2020-05-01||Tech Mahindra Ltd.||BOB Capital Markets Ltd.||546.25||570.00||546.25 (9.73%)||Target met||Sell|
|2020-03-19||Tech Mahindra Ltd.||Motilal Oswal||530.00||820.00||530.00 (13.09%)||36.80||Buy|
Clients are adapting to the current situation and waiving off standard terms of contracts to allow employees to work from home so that business continuity is Almost all onsite resources are equipped with laptops to be able to work from home. Among the offshore resources, 40-50% are equipped with laptops to ensure business continuity, just in case if employees were to work from home. In BPO segment, company is spreading employees across floors and shifts to Offices in China remains closed so far. In Italy, people are working from home and client projects have been running on track. Other than these two geographies, there is no broad-based impact across any other customers as of now. Despite the sharp interest rate cuts across economies and volatility in capital markets, BFSI should deliver a good performance as the customer base of TechM well is diversified across geographies and a large deal has been ramping up in this vertical.
|2020-03-18||Tech Mahindra Ltd.||ICICI Securities Limited||530.00||760.00||530.00 (13.09%)||26.79||Buy|
ICICI Securities Limited
The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...
|2020-03-06||Tech Mahindra Ltd.||Axis Direct||740.40||910.00||740.40 (-19.04%)||51.82||Buy|
|2020-02-10||Tech Mahindra Ltd.||Axis Direct||813.65||910.00||813.65 (-26.33%)||51.82||Buy|
|2020-02-05||Tech Mahindra Ltd.||Karvy||819.95||866.00||819.95 (-26.90%)||44.48||Hold|
|2020-02-04||Tech Mahindra Ltd.||Hem Securities||811.10||880.00||811.10 (-26.10%)||46.81||Buy|
Tech Mahindra Ltd offers Information Technology (IT) services and solution to telecommunications sector across the world. The Company is a leading Telecom focused provider of IT Services & Solutions to Global Telecommunication Industry, encompassing Telecom Service Providers (TSPs), Telecom Equipment Manufacturers (TEMs) and Independent Software Vendors (ISVs). The Company serves a broad spectrum of customers in the telecom ecosystem. The company also engaged in the...
|2020-02-03||Tech Mahindra Ltd.||IDBI Capital||793.15||789.00||793.15 (-24.43%)||Target met||Hold|
TECHM's reported a strong revenue growth in Q3FY20, while EBIT margin was a miss. Revenue grew by 4.3% QoQ in CC (5.1% in US$) vs. our forecast of 2.3%. EBIT margin saw a decline of 60bps QoQ to 12.2% vs our forecast of 12.7%. Further, EPS of Rs13.2, +1.9%/-3.2%, QoQ/YoY was aided by higher other income and was a beat. In Q3, TECHM has continued its deal win momentum with net new wins of ~US$1.23bn which includes ~US$1.08 bn from Enterprise segment and ~US$145mn from...
|2020-02-03||Tech Mahindra Ltd.||Nirmal Bang Institutional||793.15||793.15 (-24.43%)||Mgmt Note|
Nirmal Bang Institutional
Tech Mahindra (TML) 3QFY20 constant currency (CC) revenue growth of 4.3% QoQ fell short of our estimate of 6% in what seems to have been substantial weakness in the top 6-20 accounts buckets. USD revenue growth of 5.1% (QoQ) was led by ~9% growth in communications vertical largely driven by phase 1 ramp-up of AT&T; deal (See our note A showcase deal for the 5G Telco world?) and 2.4% growth of the enterprise segment. After a record TCV of $1.49bn (largely driven by the AT&T; deal) TML recorded a second consecutive mega TCV quarter of USD1.23bn driven by another blockbuster deal. This time it is a US$900mn one in the insurance segment (from Jackson National life, an indirect subsidiary of British insurer Prudential) and largely in the IMS service line. TML until...
|2020-02-01||Tech Mahindra Ltd.||HDFC Securities||807.55||910.00||807.55 (-25.78%)||51.82||Buy|
Revival in Enterprise coupled with Telecom traction (large deal win and healthy pipeline) is supporting growth. BFSI growth will continue led by strong deal wins, Healthcare and TME will recover gradually. Manufacturing will stabilise led by growth in process industry and Auto sector pain is behind. The synergies between Telecom and Enterprise are now visible and can lead to large multi year transformational deal wins. We expect USD revenue CAGR of 7.9% over FY19-22E led by Telecom/Enterprise CAGR of 8.3/7.7%. TechM trades at a P/E of 14.6x FY21E (in line with Tier-1 median P/E). The risks to our thesis include deterioration in US/Europe macros, Brexit, trade wars and delay in 5G spend. We maintain BUY on Tech Mahindra based on higher than expected revenue and profits in 3QFY20. Growth visibility has revived for Telecom and Enterprise segment based on strong TCV wins for the second consecutive quarter. We increase earnings est. for FY21/22E by 3.5/4.7% based on better visibility and margin recovery. Our TP stands at Rs 910 based on 15x (~10% premium to 5Y avg.) Dec-21E EPS.
|2020-02-01||Tech Mahindra Ltd.||Prabhudas Lilladhar||793.15||724.00||793.15 (-24.43%)||Target met||Sell|
TCV was strong at US$1.23 bn (M9FY20: USD 3.2 bn, 151% YoY) led by US$ 900mn mega deal with Jackson National Life, this deal will be executed over a period of six years with revenue flow starting in the Q4FY20E....