Moneycontrol
Get App
Last Updated : Jul 31, 2019 04:16 PM IST | Source: Moneycontrol.com

Buy Tech Mahindra; target of Rs 770: Motilal Oswal

Motilal Oswal is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 770 in its research report dated July 30, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal 's research report on Tech Mahindra


1QFY20 revenue grew 3.7% YoY CC (v/s est. of +3.8% YoY), EBIT declined 8% YoY (v/s est. of +10.5% YoY) and PAT increased 7% YoY (v/s est. of +17.9% YoY). EBIT margin declined 390bp QoQ to 11.4% (220bp miss to our est. of 13.6%). Margins were primarily impacted by a sharp decline in GPM, down 430bp QoQ to 28.8% (260bp below our est.). PAT at INR9.6b, was down 15% QoQ (9% miss to our est.), mainly due to operational miss; it was partially offset by higher other income at INR3.4b (v/s est. of INR2.6b).


Outlook


Over FY19-21, we expect USD revenue CAGR of 6.4% and earnings CAGR of 7.1%. Our TP of INR770 (20% upside) discounts forward earnings by 14x, the average multiple over the last five years. Maintain Buy.


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.



Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on Jul 31, 2019 04:16 pm
Sections
Follow us on