Sharekhan's research report on Tech Mahindra
Tech Mahindra (TechM) is expected to report 4% q-o-q revenue growth in constant currency (CC) in Q3FY2022. EBIT margin to remain stable on a sequential basis. TechM is well-placed to capture incremental share in 5G, given strong domain knowledge, robust client relationship, and excellent partner ecosystem. We expect TechM’s total deal TCVs to be around $650 million in Q3FY2022, higher than its average quarterly run-rate of $400 million- $500 million, but lower compared to $750 million deal TCVs in Q2FY2022.
We maintain Buy on TechM with a revised PT of Rs. 2,060, given improving execution, a strong revenue growth potential, margin stability, healthy deal TCVs, and a good capital allocation.
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