ICICI Direct's research report on Tech Mahindra
Tech Mahindra’s (TechM) revenues increased 0.7% QoQ in constant currency terms mainly led by 1.1% QoQ growth in Enterprise revenues. The company also reported EBITDA margins improvement of 45 bps QoQ to 20%. The order book increased from US$455 million to US$1043 million, mainly led by robust growth in Enterprise and Communication segment. The company aspires to have double digit revenue growth in FY22E based on deal wins and EBIT margins at 15%.
Outlook
Hence, we maintain BUY with a revised target price of Rs 1,120 (16 x PE on FY23E EPS) (earlier target price Rs 1,120).
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