Tech Mahindra Ltd. share price target

TECHM's analyst meet today focused on the 3Ps Purpose, People and Performance

Tech Mahindra plans to scale BFSI to US$1.5 billion We forecast TechM to add ~US$500 million in BFSI segment in coming years. And we expect the company to achieve the same by being a challenger in digital core transformation, wealth management, payment, lending and insurance. Further, We expect Tech M to adopt land and expand strategy by initially penetrating through the challenger mode. In addition, empanelment of 10 banking names to it client bucket will further boost revenues in coming years. Manufacturing a US$1.5 billion segment over next few years...

TechM aspires to achieve industry leading growth by investing in 4 big bets: -1) Connectivity (best invested in connectivity space), 2) Experience (CX deal bookings worth $567 Mn in H1FY22 with highest ever deal pipeline), 3) Cloud...

Healthy growth momentum with new deal wins Tech Mahindra Ltd. develops and markets computer software. The Company markets software for telecommunications equipment manufacturers,...

tax rate was 29.36% compared to 23.89%.Minority interest decreased 82.40% to Rs 2.20 crore. Net profit attributable to owners of the company decreased 1.07% to Rs 1,338.70 crore. Consolidated Quarterly Result YoY comparison Net sales (including other operating income) of Tech Mahindra has increased 16.11% to Rs 10881.3 crore. Sales of BPO segment has gone up 37.06% to Rs 1,305.50 crore (accounting for 12.00% of total sales). Sales of IT segment has gone up 13.74% to Rs 9,575.80 crore...

We recommend a BUY rating on the stock and assign a 21x P/E multiple to the company's FY24E earnings of Rs 82.6/share to arrive at a TP of Rs 1,700/share. TP implies an upside of 12% from CMP.

Q2FY22 revenue grew 6.4%/+16.4% QoQ/YoY in US$ driven by enterprise segment (60% of revenue) has grown by 7%/15.9% QoQ/YoY in CC terms. Communications, Media and Entertainment (40% of revenue) has grown by 6.7%/16.1% QoQ/YoY. Communication & enterprise to drive long term double digit growth The company has maintained its guidance of double digit revenue growth and 15% margins for FY22. The growth in revenues expectation is based on healthy H1 (15.5% YoY growth) and seasonally strong H2 growth. Hence we have built in a growth of 16.6% for FY22. Further, in the next two years we expect the company to register double...

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Q2 revenue growth beat estimates at 6.4% QoQ USD on 6.3%/6.7% enterprise/communications business growth

Telecom turnaround to accelerate growth