Axis Direct's research report on Tech Mahindra
TechM reported revenue growth of 3.6% QoQ (Organic: +2.4%, CJS: ~USD 14 mn, CC: 2.3% QoQ) to USD 1,179 mn (AxisCapE/Cons.: USD 1,165 mn/USD 1,172 mn). EBITDA margin up 180 bps QoQ at 14.5% led by utilization uptick, lower headcount, and absorption of visa costs. Reported EPS grew 4.7% QoQ to Rs 9.4 (AxisCapE/Cons.: Rs 7.02/ Rs 8.27), led by higher EBITDA. TCV win of USD 340 mn+ in Q2FY18 led by 1 large deal win in each Telecom and Enterprise.
Outlook
We believe low running expectation for revenue growth and margin improvement leaves room for positive surprise. We have a BUY rating and target price of Rs 550 (14x FY19E EPS). At the CMP of Rs 489, the stock trades at 13x/ 12x FY18E/FY19E.
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!
