Expect Tech Mahindra to test Rs 560: Gaurang Shah

Gaurang Shah, VP at Geojit BNP Paribas Financial Services told CNBC-TV18, "Let me give the disclosure, we do have a positive coverage on Tech Mahindra. Our earlier target were set aside at Rs 710 but post the profit margin issues which the management gave out we reduced the target to about Rs 560." "What we understand is that correction in price was already there given the profit margin issues that management had given out and our sense is that the acquisitions which the company has made should build up synergies as we go forward from here on. As we integrate with the business, the topline and bottomline visibility should be much more better in the following Q2 and Q3. However I would like to see the other income component," he said.