Buy Tech Mahindra, says Sanjay Vaid

Buy Tech Mahindra, says Sanjay Vaid of SBI Capital Securities.

Vaid told CNBC-TV18, "Tech Mahindra has seen an aggressive rollover into the August series of more than 76%, which is very healthy and apart from this the stock is holding above the weekly breakout of Rs 764. Given these things, I think it is technically and in the future options segment poised for a up move."
He further added, "Apart from this fundamentally also strong stock looks very good as it is trading at 13 times FY12 earnings, which is at significant discount to tier I peers. We expect that this performance going forward would improve in this year and the demand environment especially in the telecom space in which the company operates is very robust and should do very well going forward in the second half of the year. Given all these things we expect that the stock would trade positively and can go upto the target of Rs 836 in the shorter term therefore we are recommending a buy in the stock with a target of Rs 836."