Motilal Oswal is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 900 in its research report dated May 22, 2019.
Motilal Oswal's research report on Tech Mahindra
For FY19, TECHM's USD revenue grew 4.2% YoY, EBITDA increased 34% YoY and PAT was up 13% YoY. Including the buyback of INR19.6b, the total payout for the year stood at 74.5%. For 4QFY19, USD revenue grew 1.9% YoY (our estimate: +3.5% YoY), EBITDA increased 16% YoY (our estimate: 23%) to INR16.4b, while PAT declined 7% YoY (our estimate: -1% YoY) to INR11.3b.
Our TP of INR890 (15% upside) discounts forward earnings by 14.5x, the average multiple over the last five years. Maintain Buy.
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