Tech Mahindra shares edged higher on December 2 after Jefferies retained a "buy" call on the stock.
The global research firm has maintained buy with target at Rs 1,950 per share, an upside of 21 percent from the current market price. "Sustainability is becoming an important evaluation criteria for new deal wins while clients are also engaging with the company to achieve ESG objectives," the brokerage firm said.
It believes remote-working has improved ESG metrics materially and a hybrid model seems to be the way forward.
The stock was trading at Rs 1,601.60, up Rs 13.25, or 0.83 percent at 10:35 hours. It touched an intraday high of Rs 1,605 and an intraday low of Rs 1,580.
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Domestic research and broking firm Prabhudas Lilladher also has a buy on the stock with a target of Rs 1,862 per share, an upside of 16 percent from the current level.
"The stock is trading at 20X/18.5X earnings multiple on FY23/24 EPS of Rs 75.8/82.5 on FY22/23E, respectively, and is inexpensive. The company has revenue/EPS CAGR of 12.8 percent/12.8 percent over FY22-24," it added.
Milind Kulkarni, CFO at Tech Mahindra, in a CNBC-TV18 interview, said clients are accelerating their spending on IT. He believes that BFSI and hi-tech are both becoming growth driving verticals for the company. However, as far as hiring costs are concerned, they are on the rise and remain an industry-wide worry, he said.
"The mood is quite buoyant, there is potential in hi-tech and BFSI; we expect maximum momentum from these verticals. Manufacturing, after not-a-great-year last year has also started growing. Communication is doing well, so almost all verticals are growing for us," Kulkarni added.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.