Get App
Last Updated : Feb 20, 2019 02:57 PM IST | Source:

Buy Tech Mahindra; target of Rs 860: Motilal Oswal

Motilal Oswal is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 860 in its research report dated February 05, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Tech Mahindra

TECHM's revenue grew 4.2% YoY (our estimate: +2.7%) to USD1,261m, EBITDA increased 36% YoY (our estimate: +34%) to INR17.2b and PAT grew 28% YoY (our estimate of flat growth) to INR12.0b in 3QFY19. CC revenue grew 4.3% QoQ (+6.4% YoY; our estimate: +2.6% QoQ, +4.7% YoY) in the quarter. Gross margin shrank 100bp QoQ to 33%. However, EBITDA margin expanded 50bp QoQ to 19.3% (above our estimate of 18.9% by 40bp), driven by lower SGA (-150bp QoQ to 13.8%; our estimate: 15.3%). PAT increased 27.7% YoY to INR12.0b, higher than our estimate of INR9.38b (28% beat), led by lower forex losses (INR0.8b v/s our estimate of INR1.9b) and lower ETR (17.8% v/s our estimate of 25%).


Our TP of INR860 (15% upside) discounts forward earnings by 14.5x, 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 are their own, and not that of the website or its management. 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.

Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!

First Published on Feb 20, 2019 02:57 pm
Follow us on