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
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
