Exclusive Webinar :Don't miss the latest webinar on Global Investing with Passive Products on June 22, 11am

Buy Tech Mahindra; target of Rs 1060: Dolat Capital Market

Dolat Capital Market is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 1060 in its research report dated April 26, 2021.

May 14, 2021 / 03:29 PM IST
  • bselive
  • nselive
Todays L/H

Dolat Capital Market's research report on Tech Mahindra

TECHM reported CC growth of 0.7% QoQ (DE: 2.0%) due to weak performance of most verticals except BFSI (4.9% QoQ growth). EBIT margin further improved by 55bps to 16.5% (DE: 15.5%) led by higher off-shoring and improved operational efficiency. Net New TCV signings showed a strong improvement at $1Bn (Expects similar traction in Q1) while TTM TCV were down 40% at $2.2Bn. It has guided for double digit growth in FY22 which is led by improved deal win momentum and recovery in Retail/Mfg./Telecom Verticals. Guided for EBIT Margin of 15%+ for FY22E as it expects to overcome headwinds of upcoming hike (from April’21), hiring, deal ramp-up costs, through operational efficiencies and operating leverage.


Factoring modest results, confident outlook and strong TCV performance, we increase our earnings estimates by 4%/3% in FY22E/FY23E and maintain Accumulate rating with TP of Rs1060 valued at 18x FY23E EPS.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 14, 2021 03:29 pm

stay updated

Get Daily News on your Browser