Sharekhan has given Buy recommendation for Tech Mahindra with a target price of Rs. 2060 in its research report issued on Jan 17, 2022

Sharekhan’s research report on Tech Mahindra

Tech Mahindra announced the acquisition of Com Tec Co IT Ltd (CTC), offering high-end digital engineering services in the insurance vertical, for EUR 310 million. It will also buy a minority stake in two InsurTech platforms. The acquisition will scale-up Tech Mahindra’s insurance business by acquiring deep-domain expertise, provide access to advanced capability, and bring synergy through cross-sell opportunities. As CTC has industry-leading margins, the acquisition will be margin accretive to TechM on a consolidated basis. However, CTC has very limited sales capability..


We maintain a Buy on TechM with a PT of Rs. 2,060, given its continued strategic acquisitions in enhancing capability, a strong revenue growth potential, margin stability and a decent capital allocation.

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