Tech Mahindra Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 151517.87 Crore) operating in IT Software sector.
Tech Mahindra Ltd. key Products/Revenue Segments include Software Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 11163.45 Crore, up 6.47 % from last quarter Total Income of Rs 10484.90 Crore and up 17.64 % from last year same quarter Total Income of Rs 9489.30 Crore. Company reported net profit after tax of Rs 1340.95 Crore in latest quarter.
Investment Rationale
The brokerage believes Tech Mahindra has a superior services mix along with multiple long-term contracts well-spread across the verticals, reducing its dependency on any one vertical. Furthermore, the brokerage foresees healthy tractions in Communications and Enterprise verticals which will greatly accelerate the company’s revenue growth moving forward. It recommends a BUY rating and assign a 21x P/E multiple to its FY24E earnings of Rs 82.6/share to arrive at a TP of Rs 1,700/share, implying an upside of 12% from CMP.
Promoter/FII Holdings
Promoters held 35.7 per cent stake in the company as of 30-Sep-2021, while FIIs owned 35.55 per cent, DIIs 16.9 per cent.
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