Buy Tech Mahindra; target of Rs 1950: Sharekhan

Sharekhan's research report on Tech Mahindra

Reported revenues stood at $1,564 million, down 1.4% q-o-q in CC terms, missing our estimate of a 0.7% sequential decline in CC terms. EBIT margin expanded by ~60 bps q-o-q to 11%, beating our estimate of 10.1%. New deal win TCVs stood at $809 million, up 51% y-o-y.. Company expects to bridge historical growth gap with peers in FY26 and aims to exceed peer-average growth in FY27.

Outlook

We maintain Buy rating with an unchanged PT of Rs. 1,950(25x FY27E EPS). At CMP, the stock trades at 26.7/20.7x its FY26/27E EPS.

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