Buy Tech Mahindra; target of Rs 1120: ICICI Direct
ICICI Direct is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 1120 in its research report dated April 27, 2021.
June 10, 2021 / 10:44 AM IST
ICICI Direct's research report on Tech Mahindra
Tech Mahindra’s (TechM) revenues increased 0.7% QoQ in constant currency terms mainly led by 1.1% QoQ growth in Enterprise revenues. The company also reported EBITDA margins improvement of 45 bps QoQ to 20%. The order book increased from US$455 million to US$1043 million, mainly led by robust growth in Enterprise and Communication segment. The company aspires to have double digit revenue growth in FY22E based on deal wins and EBIT margins at 15%.
Hence, we maintain BUY with a revised target price of Rs 1,120 (16 x PE on FY23E EPS) (earlier target price Rs 1,120).
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