Last Updated : Oct 29, 2020 05:04 PM IST | Source: Moneycontrol.com

Buy Tech Mahindra; target of Rs 923: Geojit

Geojit is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 923 in its research report dated October 28, 2020.

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

Geojit's research report on Tech Mahindra


In Q2FY21, revenue rose 2.9% QoQ (+3.3% YoY), owing to recovery in demand. In USD terms, on constant currency (CC) basis, revenue came in as mixed bag +2.9%/-3.0% on QoQ/YoY. EBIT margin expanded by ~410bps QoQ, led by demand/supply improvement (+160bps), prudent cost management (+160bps) and seasonality benefit (+160bps). No. of active clients stood at 988 vs. 981 in Q1FY21 and the company has won various multi-year deals to provide services across locations. The improved demand/supply scenario, margin expansion and increase in deal wins should support the company’s steady recovery.


Outlook


Hence, we retain our BUY rating on the stock with a revised TP of Rs. 923 on 17x FY22E adj. 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.

First Published on Oct 29, 2020 05:04 pm
Sections