Tech Mahindra Ltd. share price target

CME segment drives growth

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%...

TechM is doubling down investments in Insurance sector with acquisition of CTC and investments in SWFT and Surance TechM announced acquisition of 100% stake in CTC, digital engineering and transformation provider serving Insurance industry for EUR 310 mn (~USD 353.7 mn) including EUR 100mn earnouts payable over 4 years. CTC generated revenue of EUR 71.3 mn (~81.36 USD mn) in CY20 which amounts to 2% of TechM's FY21 revenue. In 9MCY21 it reported revenue of EUR 69...

TECHM has announced the acquisition of Com Tec Co IT (CTC), an East European IT Services company with a presence in the Digital engineering and outsourced product development space, for EUR310m. CTC services clients in the Insurance vertical, which should strengthen TECHM's capabilities in that space. It has development centers in Eastern Europe (Latvia and Belarus) and has a workforce of 720. TECHM has also acquired a minority stake (25%) in two group SaaS companies (SWFT and...

Growth trajectory to sustain

The company has been focusing on margin improvement as EBIT margins have improved 260 bps in FY21 vs. FY20. TechM also indicated that margin trajectory would continue to improve, going forward on elevated freshers...

TechM aspires to achieve industry leading growth by investing in 4 big bets: -1) Connectivity (best invested in connectivity space), 2) Experience (CX deal bookings worth $567 Mn in H1FY22 with highest ever deal pipeline), 3) Cloud...