Tech Mahindra Ltd. share price target

Upgrade to BUY with a TP of Rs 700 based on 15x Dec-19 EPS (vs 13x earlier). Tech Mahindra delivered robust performance in 3QFY18 both on the revenue and margin fronts. Revenue stood at USD 1,209mn (+2.5% QoQ, +2.4% CC), higher than our estimate of USD 1,197mn. Growth was driven by the Enterprise business (+4.2% QoQ, ex-IP +2.8%), led by IP deal integration and traction in Manufacturing (+3.1% QoQ).

Tech Mahindra (TechM) has delivered a decent performance in 3QFY18, with its USD revenue rising by 2.5% QoQ to US$1,209mn. While the Enterprise business grew at a robust pace of 4.2% QoQ, the key Communications vertical remained under pressure with revenue growing by a subdued 0.4% QoQ in USD terms. Notably, this vertical contributed 42.8% to TechM's total revenue, marking the lowest level since the acquisition of Satyam. Vertical-wise, Manufacturing and Technology, Media & Entertainment (TME) were the key revenue drivers, with segmental revenue rising by 3.1% and 13% QoQ, respectively. It should be noted that the IP partnership, which TechM entered into last quarter has been included in TME vertical. Led by cost control and...

The management believes that Tech Mahindra's strong capabilities and improved demand traction in four key focus areas - Network of Future, IoT, Dev-ops and Customer Experience - would aid in sustaining growth across verticals in the coming quarters. Tech Mahindra's investment in the Acumos platform (with AT&T; on AI) and with Toshiba on Smart Factory along with the recent minority investment in Alitostar in the area of virtualized radio network space is a testimony to the same. In the Telecom business, it is winning consistent orders for the new-age offerings and would witness traction as CY18 evolves (done with the portfolio restructuring) owing to its focused service approach and client relationships. The company is...

At its analyst meet, Tech Mahindra (TECM) reiterated that it is focused to drive stronger growth in the Enterprise segment (56.3% of revenue). Also, it expects the communications segment to come back to growth in FY19. It confirmed that it has the strategy and senior management in place and now is focused for execution. TECHM articulated its 343' business strategy which focuses on 3 Mega Trends, 4 Big Bets it has taken to cater to these trends and 3 Objectives to achieve the same. This strategy is in place for both the Enterprise and Communications segment. We maintain our TP of Rs499 based on 13x FY19E, in-line with median one-year...

We believe the stock has already factored in most of the recovery, maintain NEUTRAL with a TP of Rs 540 based on 13x Dec-19 EPS. We attended the Tech Mahindra (TechM) investor meet where the company showcased its Telecom and Enterprise business growth strategy along with Demos of various IoT, Machine Learning and Digital Transformation initiatives. Telecom industry is going through a transformation wherein CSP are spending on building network of the future (5G), Digital Technology, investing in platforms for vertical solutions, IoT network backbone and improving customer experiences.

Tech Mahindra posted in-line results for 2QFY2018 on all fronts except net profit. In Rupee terms, revenues came in at `7,606cr v/s. `7,582cr expected, up 3.7% qoq. On the operating front, the utilization levels during the quarter came in at 81% v/s. 77% in 1QFY2018, which along with volume also aided the margins to come in higher. On the..

TechM reported revenue growth of 3.6% QoQ (Organic: +2.4%, CJS: ~USD 14 mn, CC: 2.3% QoQ) to USD 1,179 mn (AxisCapE/Cons.: USD 1,165 mn/USD 1,172 mn).

Looking ahead, we expect TechM's Enterprise business to sustain healthy growth momentum. We also expect growth metrics in Communications business to improve further, which could be a key driver for a multiple rerating, apart from margin expansion. We believe that valuation at 11.8x FY19E EPS, which leaves little room for downside, is another positive aspect. Upwardly revising our target PE multiple to 13x from 12x earlier, we maintain our BUY...

Maintain NEUTRAL with a TP of Rs 477 based on 12x Sep-19 EPS. Tech Mahindra delivered better-than-expected 2QFY18 numbers, both on the revenue and margin fronts. Revenue stood at USD 1,179mn (+3.6% QoQ, +2.3% CC), higher than our estimate of USD 1,166mn (+1.4% CC). Growth was driven by the Enterprise business (+6.4% QoQ, Organic +3.9%), led by HCI integration (Healthcare) and traction in the BSFI and Manufacturing verticals. Telecom (44% of rev, +0.2% QoQ) remains the laggard, led by weak Comviva (VAS) and restructuring in LCC (Network Services) business.

ICICI Securities Ltd | Retail Equity Research Tech Mahindra (TechM) reported its Q2FY18 earnings wherein revenue growth was in-line with our estimates while EBITDA margins came in much better than our expectations US$ revenues grew 3.6% QoQ to $1179.2 million and were in line with our expectation of 3.3% growth and $1,176 million estimate Rupee revenues grew 3.7% QoQ to | 7,606 crore and were broadly in line with our | 7,556.8 crore estimate...