Tech Mahindra Ltd. share price target

Tech Mahindra's Q1FY22 consolidated revenue grew 12.0% YoY to Rs. 10,198cr (+4.8% QoQ), driven by robust performance from IT segment (+7.8% YoY to Rs. 9,016cr) and significant growth in BPO business (+59.8% YoY to Rs. 1,182cr). Communications, Media and Entertainment (CME) business, contributing 40.0% to overall revenue, posted a 12.6% YoY growth whereas Enterprise business improved by 16.0% YoY. Leading among the segments, Technology reported a 22.7% YoY growth while manufacturing, BFSI and Retail segments rose by 12.2%, 19.7% and 16.4% YoY respectively. Performance was delivered on the back of positive trends across all...

Pruning of low return geographies, acceleration in Europe and improving demand from lift & shift deals to drive 12%CAGR growth over FY21-23E A 210 bps improvement in margins over FY21-23E led by higher offshoring,...

In USD terms, revenue growth of 3.9% QoQ CC in 1QFY22 was above our estimate mainly on account of Communications (+2.9% v/s expectation of flat growth). The Enterprise business reported a growth of 4.7% QoQ CC. New deal wins fell 20% QoQ to USD815m (0.6x BTB), but stayed ahead of past trends, while the qualified pipeline remained at historical peaks. EBIT margin dipped by 130bp QoQ in 1QFY22 (led by wage hike, visa cost and seasonality in Communications), but was 90bp above our estimate. TECHM added 5,200 employees in 1QFY22 (70% in the BPS vertical),...

decline in operating profit to Rs 1,876.40 crore. Employee cost increased from 48.26% to 50.62%. Other expenses fell from 32.24% to 30.98%. Software technology development services cost rose from 12.71% to 14.80%. Other income rose 781.29% to Rs 287.3 crore. Provision for interest fell 8.63% to Rs 38.1 crore. Provision for depreciation fell 3.86% to Rs 331.1 crore. Profit before tax grew 16.23% to Rs 1,794.50 crore. Provision for tax was expense of Rs 428.6 crore, compared to Rs 499.8 crore. Effective tax rate was 23.89% compared to...

We recommend a BUY rating and assign a 19x P/E multiple to its FY23E earnings of Rs 70/share which gives a TP of Rs 1,310/share, implying an upside of 16% from CMP.

TechM is trading at significant discount to all its peers, we believe discount to narrow down significantly as progress is happening in multiple dimensions i) Improving margin profile ii) Restructuring of value acquisitions iii) Disciplined...

Q1 dollar revenue growth beat our estimate at 4.1% QoQ on 4.7% enterprise business growth and 3.2% recovery in communications

(TechM) range of solutions for Communications Service Providers(CSPs), telecommunications equipment manufacturers (TEMs), and independent software manufacturers (ISVs) make...

Expanding margins and prospective deal wins should support company performance and help gain market share. We reiterate our BUY rating on the stock with a revised TP of Rs. 1,175 on 18x FY23E adj. EPS. Strong deal pipeline to help gain momentum Consolidated revenue for Q4FY21 rose 2.5% YoY to Rs. 9,730cr (+0.9% QoQ) mainly as BPO segment outperformed at a 28.6% YoY growth (flat QoQ) to Rs. 1,057cr. IT segment remained flat YoY at Rs. 8,673cr (+1.0% QoQ). In USD terms, BFSI (+10.3% YoY, +4.9% QoQ) and Technology segment (+27.8% YoY, +0.5% QoQ) outgrew with...

TECHM's 4QFY21 USD revenue growth of 0.7% QoQ CC was below our already modest expectations. Communications was flat during 4QFY21, while the Enterprise business posted modest growth (1.1% QoQ CC). New deal wins of USD1.04b was the highest in five quarters and split equally between Communications (driven by the Telefonica deal win) and enterprise. EBIT margin increased by 60bp to a multi-year high of 16.5%, unlike our expectation of a 20bp QoQ dip. Increase in margin was led by further rationalizing of headcount (847 employee reduction), while...