Edelweiss's research report on Tech Mahindra
We recently attended Tech Mahindra’s (TECHM) analyst meet, whichoffered insights into the company’s strategy. Key takeaways: 1) unveiled 3‐4‐3 strategy, wherein the company has identified 3 mega trends, 4 key bets and 3 objectives to accelerate growth; 2) while enterprise business’ growth momentum has sustained, leadership in telecom is envisaged to spearhead revival; 3) cost rationalisation will sustain margin revival (up 250bps in 2 quarters);
Outlook
We estimate TECHM to comfortably post EPS CAGR of 10.6% over FY17‐19. The stock currently trades at 12.8x FY19E EPS. We retain ‘BUY/SP’ with target price of INR546 (14x FY19E EPS).For all recommendations report, click here
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