Tech Mahindra Ltd. share price target

5G, digital, large deal wins to drive growth The company reported healthy growth on the communication and enterprise side. Going forward, TechM expects communication to witness improved IT spends led by 5G, digital, customer experience, AI, cloud and network operations. The company is seeing healthy deal wins in 5G (north of US$50 million) and is also seeing traction in small & medium size deals. In addition, from the enterprise side, TechM is seeing improving demand from artificial intelligence, machine learning, cybersecurity, customer...

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...

In its analyst meet today, Tech Mahindra (TECHM) emphasised its focus on reviving growth and appeared optimistic about demand traction and margins.

At its Investor Day 2020, TECHM reiterated its target to accelerate its revenue growth in FY22 and improve EBIT margin to 15% levels from 14.2% levels in Q2FY21. TECHM targets to achieve this through a double-digit revenue growth in the Enterprise business led by large deal wins and growth in digital business. TECHM also confirmed that even...

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...

We recommend a BUY on Tech Mahindra with a Target Price of Rs 890, an upside of ~7% from CMP of Rs. 833 and Stop Loss Rs 800.

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%.

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...