Hold Tech Mahindra; target of Rs 450: ICICI Direct

ICICI Direct's research report on Tech Mahindra

Tech Mahindra (TechM) reported its Q1FY18 earnings wherein  revenue growth was in line with our estimates while EBITDA margins  were better than our estimate on the  back of lower cost of services US$ revenues grew 0.6% QoQ to $1138.1 million and were in line  with our expectation of 0.6% growth and $1,138.5 million.

Outlook

We expect TechM to report rupee revenue, PAT CAGR of 8.3 %, 9.8 % in FY17-19E with average 14.3 % EBITDA margins. We change our stance on TechM to HOLD with a revised target price of Rs 450 based on FY19E EPS of Rs 38.2. For all recommendations report, click here

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