Tech Mahindra Ltd. share price target

We recommend a BUY on Tech Mahindra with a Target Price of Rs 710, an upside of ~7% from CMP of Rs. 664 and Stop Loss Rs 630.

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

Tech Mahindra (TECHM) posted a 6.8% QoQ dollar revenue decline and 10bps EBITDA margin expansion, bettering our estimates for Q1FY21.

M on 14X multiple (margin volatility & lower margins than peers will restrict further re-rating of multiples) on Sep-22 EPS of Rs.51 to arrive at a changed target price of Rs. 716. Upgrade to Accumulate from Reduce. Tech M positively surprised with decent set of numbers with revenues & margins above our & street estimates. TM posted with -6.3% revenue (Ple: 6.6%, Cons: -8.3%) CC decline with core business (telecom) declined by 8.2% QoQ & Enterprise revenue declined by -5.1% QoQ. Tech M surprised on margin front beating our/cons estimates by 100bps to 10.1% & management also mentioned EBIT margins will improve from hereon. PAT came at INR9.72bn which is 22% higher than our estimates/cons led by margin beat &...

27 July 2020 TechMs resilience in revenue (-5% QoQ, CC), especially in Enterprise, is encouraging given the current context. Decline in Communications (8.2% QoQ) was on expected lines given the overhang in Network Services. The margin surprise was led by better-than-expected control on SG&A; costs. Understandably, net new deal wins (USD290m) were weaker than the usual run-rate. Despite the elongated decision-making cycles, the company hinted at improving deal pipeline. Revenue and margins are expected to improve from hereon. Ramp-up in recently won mega deals was largely on track, a key positive. We upgrade our EPS estimates over FY2122E by 17% as we revisit our growth and margin trajectory in light of the surprise in 1QFY21 and optimistic commentary. TechM reported revenue (USD) / EBIT / PAT growth of -3%/-8%/1% YoY v/s our estimate of -5%/-18%/-23% YoY. Revenue declined 6.3% QoQ (CC), lower than the consensus expectation of 7.

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...

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)....

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...

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.