Tech Mahindra emerges as top Nifty 50 gainer as CLSA upgrades to 'outperform', shares surge 3%

Tech Mahindra shares jumped 34 percent over the past 12 months.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

IT services major Tech Mahindra was the top gainer on the frontline Nifty 50 index, jumping over three percent in trade as international brokerage CLSA upgraded the counter.

The broking firm changed its rating on Tech Mahindra to 'outperform', from its earlier 'hold' call. CLSA also bumped up its target price on the IT firm to Rs 1,749 per share, higher from its earlier target of Rs 1,626. This implied a further upside of 11 percent from the previous session's close.

At 9.50 am, TechM's share price was quoting Rs 1,630.2 on the NSE, higher by 3.4 percent compared to the previous session's close.

Follow our live blog to catch all the updates

According to CLSA, Tech Mahindra is already seeing its EBIT margin expand from current levels, and the next milestone will be an expanding order book, as there are no major upticks in order bookings currently.

As a result, the brokerage does not foresee a broad-based growth revival for the IT services player until the next fiscal year. Tech Mahindra's clear focus on BFSI, Healthcare and Manufacturing implies a balanced product mix.

Last month, international brokerage Citi reiterated its 'sell' call on TechM, as growth seems difficult in the current environment. While BFSI is improving, it is slow adnd gradual. Additionally, while the focus on costs to drive margins is present, a part of the margin improvement will be re-invested into the firm.

Over the past 12 months, shares of Tech Mahindra gained 34 percent in trade, mildly outperforming the benchmark index Nifty 50 which has gained 32 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.