Tech Mahindra Ltd. share price target

Likely Revival of Communications Biz to Aid Growth Tech Mahindra (TechM) has delivered an in-line performance in 1QFY19 with its USD revenue declining by 1.6% QoQ to US$1,224mn (0.3% in CC terms), exactly in-line with our estimate. Communications business remained under pressure, with revenue declining by a steep 6.3% QoQ in USD terms, which on YoY basis declined by 5.8%, marking de-growth for fourth consecutive quarter. Notably, this vertical contributed 39.6% to total revenue in 1QFY19, the lowest level since the acquisition of Satyam. On the other hand, Enterprise business grew by a healthy 3.8% QoQ in CC terms, while reported USD growth came in at 1.8%. Vertical-wise,...

Tech Mahindra posted healthy 3.6% QoQ growth in revenue in Q4FY18 on consolidated basis. However, in USD terms, revenue growth stood at 2.9% QoQ (1.7% QoQ in CC terms) powered by continued momentum in enterprise business (~5% QoQ) while growth in the key communication vertical (42% of revenue) was muted, however it has stabilised in the...

Tech Mahindra has been one of the leaders in providing end to end solution to the IT needs of the telecom vertical and its merger with...

ICICI Securities Ltd | Retail Equity Research US$ revenues grew 2.9% QoQ to $1244.3 million, broadly in line with our expectation of 2.5% growth and $1,239 million estimate...

Maintain HOLD with new TP of Rs688 based on 15x FY20E We maintain HOLD as we believe that the ~41% uptick in the stock in 2018 (YTD) factors the positives. Current PER of 15.3x FY20E is higher than the median 1-yr forward PER of 13.2x in the last three years....

Maintain BUY with a TP of Rs 800 based on 15x FY20 EPS. Tech Mahindra delivered decent performance in 4QFY18 both on revenue and operational fronts. Revenue stood at USD 1,244mn (+2.9% QoQ, +1.7% CC), vs our estimate of USD 1,250mn. Growth was driven by Enterprise (+5.1% QoQ), led by investment in IPs and traction in Manufacturing (+10.5% QoQ). Digital (27% of rev, +35% YoY in FY18) is driving growth in Enterprise (+19% YoY).

TECHM's growth continues to be driven by its Enterprise segment (57.2% of revenue) which grew by 4.2% QoQ in US$. TECHM confirmed that the worst is over for the Communications segment and it expects growth coming back in FY19. We factor EBIT margin beat and increase FY18/19 EPS forecast by 7.4%/5.1%. We introduce FY20 financials and now forecast revenue (US$)/EPS CAGR of 8.1%/10.2% over FY17-20E. We rollover to FY20 and now assign a target PER of 14x (vs. 13x earlier) which is in-line with the median 1-yr forward PER of 13.5x in the last three years. We maintain HOLD with new TP of Rs601....

Q3 was another strong quarter beating estimates, with revenue up 2.5% QoQ to USD 1,209 mn (AxisCapE/ Cons.: USD 1,206 mn/USD 1,195 mn). EBITDA margin was up 173 bps QoQ to 16.3% led by IP revenue accrual, LCC turnaround (profitable), utilization uptick, lower headcount, and operating leverage.

ICICI Securities Ltd | Retail Equity Research Tech Mahindra (TechM) reported its Q3FY18 earnings wherein revenue growth was marginally better than our estimates while EBITDA margins were way ahead of our expectations US$ revenues grew 2.5% QoQ to $1209 million and were above our expectation of 1.7% growth and $1,199 million estimate Rupee revenues grew 2.2% QoQ to | 7,776 crore and were broadly in line with our | 7,761.4 crore estimate...