Trending stocks: Tech Mahindra stock price rises over 2%

NEW DELHI: Shares of Tech Mahindra Ltd. traded 2.32 per cent up in Wednesday 's trade at 11:43AM (IST). Around 72041 shares changed hands on the counter.

The counter opened at Rs 528.7 and touched an intraday high and low of Rs 536.9 and Rs 523.0 , respectively, in the session so far. Shares of the company quoted a 52-week high of Rs 846.5 and a 52-week low of Rs 479.8 .

Tech Mahindra Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 50263.60 Crore) operating in IT Software sector.

Nomura has upgraded Tech Mahindra to buy from neutral and reduced target price to ₹640 from ₹820. The brokerage has upgraded the stock after a 40% correction from its peak on February 19, versus a fall of 20% in Nifty IT over the same period.

Key Financials

The company reported consolidated net sales of Rs 9654.6 crore for the quarter ended 31-Dec-2019 , up 6.45 per cent from previous quarter's Rs 9069.9 crore and up 7.95 per cent from the year-ago quarter's Rs 8943.7 crore.

The net profit after tax for the latest quarter stood at Rs 1145.9 crore, -4.74 per cent from the corresponding quarter last year .

Shareholding pattern
As of 31-Mar-2020 , domestic institutional investors held 8.391103 per cent stake in the company , while foreign institutional investors held 39.657803 per cent and the promoters 35.821472 per cent.

Valuation ratio

According to BSE data, the stock traded at a P/E multiple of 11.75 and a price-to-book ratio of 211.11 .A higher P/E ratio shows investors are willing to pay a higher price because of better future growth expectations. Price-to-book value indicates the inherent value of a company and is the measure of the price that investors are ready to pay even for 'nil' growth in the business.

Tech Mahindra Ltd. belongs to the IT Consulting & Software - Large Cap industry.