ETtechJM Financial has sell call on Tech Mahindra with a target price of Rs 970. The current market price of Tech Mahindra is Rs 1037. Time period given by analyst is 1 year when Tech Mahindra price can reach defined target.
Tech Mahindra, incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 100468.98 Crore) operating in IT Software sector.
Tech Mahindra key Products/Revenue Segments include Software Services for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 13419.65 Crore, up 4.60 % from last quarter Total Income of Rs 12830.00 Crore and up 20.21 % from last year same quarter Total Income of Rs 11163.40 Crore. Company has reported net profit after tax of Rs 1299.16 Crore in latest quarter.
The company’s top management includes Mr.Anand G Mahindra, Ms.Shikha Sharma, Mr.Haigreve Khaitan, Dr.Mukti Khaire, Mrs.M Rajyalakshmi Rao, Ms.Penelope Fowler, Mr.Manoj Bhat, Dr.Anish Shah, Mr.C P Gurnani, Mr.T N Manoharan. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 97 Crore shares outstanding.
Investment Rationale
The company's combined exposure to Telecom, Technology and Media, some of the most stressed sectors in the current environment, is 52%, clouding outlook. Likely muted growth will further push out margin recovery. While 5G within Telecom is a bright spot, economic uncertainty could delay new roll-outs and large deals there as well.
Further, though PER has corrected by 28% TTM (next only to Wipro), the brokerage sees further correction as growth/margins lag peers. The brokerage values the stock at13.5x forward EPS, 1-SD (of 5 year mean PER) below current PER. Further, it remains circumspect of any quick turnaround in the company and assume coverage with a Sell rating.
Promoter/FII Holdings
Promoters held 35.22 per cent stake in the company as of 30-Sep-2022, while FIIs owned 30.43 per cent, DIIs 23.41 per cent.
Tech Mahindra, incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 100468.98 Crore) operating in IT Software sector.
Tech Mahindra key Products/Revenue Segments include Software Services for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 13419.65 Crore, up 4.60 % from last quarter Total Income of Rs 12830.00 Crore and up 20.21 % from last year same quarter Total Income of Rs 11163.40 Crore. Company has reported net profit after tax of Rs 1299.16 Crore in latest quarter.
The company’s top management includes Mr.Anand G Mahindra, Ms.Shikha Sharma, Mr.Haigreve Khaitan, Dr.Mukti Khaire, Mrs.M Rajyalakshmi Rao, Ms.Penelope Fowler, Mr.Manoj Bhat, Dr.Anish Shah, Mr.C P Gurnani, Mr.T N Manoharan. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 97 Crore shares outstanding.
Investment Rationale
The company's combined exposure to Telecom, Technology and Media, some of the most stressed sectors in the current environment, is 52%, clouding outlook. Likely muted growth will further push out margin recovery. While 5G within Telecom is a bright spot, economic uncertainty could delay new roll-outs and large deals there as well.
Further, though PER has corrected by 28% TTM (next only to Wipro), the brokerage sees further correction as growth/margins lag peers. The brokerage values the stock at13.5x forward EPS, 1-SD (of 5 year mean PER) below current PER. Further, it remains circumspect of any quick turnaround in the company and assume coverage with a Sell rating.
Promoter/FII Holdings
Promoters held 35.22 per cent stake in the company as of 30-Sep-2022, while FIIs owned 30.43 per cent, DIIs 23.41 per cent.
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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