Buy Tech Mahindra; target of Rs 765: ICICI Direct

ICICI Direct is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 765 in its research report dated July 28, 2020.

Broker Research

July 30, 2020 / 04:07 PM IST

live

bselive
nselive

Volume

Todays L/H

ICICI Direct's research report on Tech Mahindra

Tech Mahindra (TechM)’s revenues declined 6.7% QoQ to US$1,207.5 million mainly led by 8.6% QoQ decline in communication revenues and 5.4% QoQ decline in Enterprise revenues. However, the EBITDA margin increased 16 bps QoQ to 14.3% mainly led by SG&A rationalisation and lower discretionary spend. The order book declined 43% QoQ due to delay in deal closure on the enterprise side.

Outlook

Hence, we remain positive on the stock and maintain BUY with revised TP of Rs 765 (15x PE on FY22E 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.