Tech Mahindra Analyst Meet Update - Well Poised For Growth: IDBI Capital

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IDBI Capital Report

We attended the Tech Mahindra Ltd.’s analyst meet. The key highlight of the meet was that the company will focus on banking, financial services and insurance, manufacturing, hi-tech and healthcare segment within the enterprise division (60% of revenues).

Tech Mahindra aspires to add ~$500-$600 million in each vertical. This would lead to addition of ~$2 billion to enterprise segment. This coupled with healthy growth in communications (40% of revenues), we expect the company to register double digit growth in overall revenues over next few years.

Further, Tech Mahindra plans to achieve 15% margins in FY22E.

In addition, the company aspires to further improve margins in coming years led by yield management, portfolio synergies and other operational efficiencies.

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