Geojit recommended has given Is bullish on Tech Mahindra has recommended buy recommendation for Tech Mahindra with a target price of Rs. 1724 in its research report issued on Feb 04, 2022

Geojit’s research report on Tech Mahindra

Tech Mahindra Ltd. develops and markets computer software. The Company markets software for telecommunications equipment manufacturers, telecom service providers, software vendors, and systems integrators. Topline rose 18.7% YoY to Rs. 11,451cr in Q3FY22 (+5.2% QoQ) driven by robust demand across all segments. EBITDA margin shrank 160bps YoY to 18.0% (-30bps QoQ) on lower margin product mix and increased costs on the supply side and lower utilization. PAT grew by modest 4.5% YoY to Rs. 1,369cr (+2.2% QoQ).

Outlook

We expect company to perform well in upcoming quarters on the back of improvement in EBIT margins, restructuring within the segments and with continued pace of deal wins. Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 1,724 based on 19x FY24E adj. EPS.

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