ETtech has buy call on Tech Mahindra with a target price of Rs 1372. The current market price of Tech Mahindra is Rs 1172.45. Time period given by analyst is 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 113903.74 crore) operating in IT Software sector.
Tech Mahindra key Products/Revenue Segments include Software Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 12436.08 crore, up 6.53% from last quarter Total Income of Rs 11673.90 crore and up 27.39% from last year same quarter Total Income of Rs 9762.50 crore. Company has reported net profit after tax of Rs 1545.24 crore in latest quarter.
Investment Rationale
The brokerage remains positive on company’s business outlook on the back of strong new deal wins, deal pipeline and capabilities in new tech. It expects the margin pressure led by supply side issues to subside in the coming quarters, supported by the higher fresher intakes. It foresees earnings to grow at a healthy 13% CAGR over FY22-24E and reiterates BUY rating on the stock with a revised target price of Rs 1,372 using a target multiple of 17x P/E on FY24E Adj. EPS.
Promoter/FII Holdings
Promoters held 35.26 per cent stake in the company as of 31-Mar-2022, while FIIs owned 34.27 per cent, DIIs 18.06 per cent.
Tech Mahindra, incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 113903.74 crore) operating in IT Software sector.
Tech Mahindra key Products/Revenue Segments include Software Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 12436.08 crore, up 6.53% from last quarter Total Income of Rs 11673.90 crore and up 27.39% from last year same quarter Total Income of Rs 9762.50 crore. Company has reported net profit after tax of Rs 1545.24 crore in latest quarter.
Investment Rationale
The brokerage remains positive on company’s business outlook on the back of strong new deal wins, deal pipeline and capabilities in new tech. It expects the margin pressure led by supply side issues to subside in the coming quarters, supported by the higher fresher intakes. It foresees earnings to grow at a healthy 13% CAGR over FY22-24E and reiterates BUY rating on the stock with a revised target price of Rs 1,372 using a target multiple of 17x P/E on FY24E Adj. EPS.
Promoter/FII Holdings
Promoters held 35.26 per cent stake in the company as of 31-Mar-2022, while FIIs owned 34.27 per cent, DIIs 18.06 per cent.
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