Buy Tech Mahindra target of Rs 1724: Geojit

Geojit recommended is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 1724 in its research report dated February 04, 2022.

Broker Research

February 07, 2022 / 21:16 IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

26 Aug, 2025 12:21

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Geojit's research report on Tech Mahindra

Tech Mahindra Ltd. develops and markets computer software. The Company markets software for telecommunications equipment manufacturers, telecom service providers, software vendors, and systems integrators. Topline rose 18.7% YoY to Rs. 11,451cr in Q3FY22 (+5.2% QoQ) driven by robust demand across all segments. EBITDA margin shrank 160bps YoY to 18.0% (-30bps QoQ) on lower margin product mix and increased costs on the supply side and lower utilization. PAT grew by modest 4.5% YoY to Rs. 1,369cr (+2.2% QoQ).

Outlook

We expect company to perform well in upcoming quarters on the back of improvement in EBIT margins, restructuring within the segments and with continued pace of deal wins. Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 1,724 based on 19x FY24E adj. EPS.

For all recommendations report, click here