Motilal Oswal's research report on Tech Mahindra
Tech Mahindra (TECHM) reported 4QFY25 revenue of USD1.5b, down 1.5% QoQ in constant currency (CC) vs. our estimate of 0.8% cc decline. BFSI/Communications grew 2.4%/1.0% QoQ, while Healthcare/Hi-tech and Media declined 5.6%/8.2% QoQ. EBIT margin was up 40bp QoQ at 10.5%, beating our estimate of 10.3%. PAT stood at INR11.6b (up 18.7% QoQ/20.3% YoY), above our estimate of INR10b. For FY25, revenue/EBIT/PAT grew 4.0%/48.5%/20.3% YoY in INR terms. In 1QFY26, we expect revenue/EBIT/PAT to grow by 3.0%/30.0%/37.2% YoY. Net new deal TCV was USD798m, up 7.1% QoQ/59.6% YoY.
Outlook
We reiterate BUY on TECHM with a TP of INR1,950 (implying 35% upside), based on 25x FY27E 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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
