Tech Mahindra Ltd. share price target

Q4 revenue growth in line at 4.9% QoQ USD, spearheaded by the enterprise segment; TCV robust at US$ 1.01bn

all companies in NIFTY IT Index, several mid-cap, small cap IT firms and new age internet players. Management commentary across companies indicate that strong demand environment is expected to continue over medium term and revenue growth is no longer contingent on winning large deals. Pricing environment has also improved. Additionally, companies are doing aggressive fresher hiring resulting in pyramid balancing which will provide considerable margin tailwinds in FY23....

We expect company to perform well in upcoming quarters on the back of improvement in EBIT margins, restructuring within the segments and with continued pace of deal wins. Hence, we reiterate our BUY...

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Quarterly attrition decreased by 3.3% QoQ, TechM is expanding in 9 Tier 2 cities which will support pyramid optimization. Tech M reported revenue growth of 4.7% QoQ CC, 4.1% QoQ USD, in-line with our estimates (4.7% QoQ CC, 4.1% QoQ USD). Organic growth was 4% QoQ USD. Growth was strong in Communications (+6.2% QoQ USD), whereas it was soft in Enterprise vertical 2.7% QoQ USD due to softness in BFSI (-1.5%...

We recommend a BUY rating on the stock and assign a 21x P/E multiple to the company's FY24E earnings of Rs 82.6/share to arrive at a TP of Rs 1,700/share. TP implies an upside of 13% from CMP.