JM Financial is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 810 in its research report dated July 30, 2018.
JM Financial's research report on Tech Mahindra
Tech Mahindra (TECHM) reported 1QFY19 a tad above our estimates; management’s comments indicate strong deal wins in telecom in 2QFY19 that could drive revenue growth momentum from 3QFY19 onwards, in our view; margin focus remains. Thus, while consensus earnings upgrade cycle could take time to pick up pace, we expect the stock could quickly trace back the 11% valuation correction over the last one month on back of near-term growth concerns and kick-off of 5G related capex by global telecom services providers (potentially over 2HFY19, in our view) could sustain that.
We maintain BUY and raise PT to INR 810 (INR 790 earlier); changes to our EPS forecasts are minor (c.1% each for FY19/FY20).
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