Justtrade.in has maintained buy rating on Tech Mahindra with target price of Rs 950, with upside potential of 30% form current level, in its June 26, 2008 report. "Tech Mahindra has a market cap of Rs. 8872cr, average daily volume of 75370 shares for the last six months and net sales of Rs. 3604.7cr in FY08.Tech Mahindra trades at a PE multiple of 12.2 based on FY08 earnings, Price to Book ratio of 7.8 on FY08 book-value and Price to Sales ratio of 2.5 based on FY08 net sales. Valuations seem to be cheap as compared to the consistent growth in the company's revenues and profits.On the basis of our research, we feel that this is a good stock to buy at the current market price of Rs. 730.1. If everything goes well, the price is likely to appreciate to Rs. 950.0, within 12 months, translating into a gain of about 30%" says the Justtrade.in report.
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