Sanju Verma bullish on Tech Mahindra

Sanju Verma, Group CEO of Violet Arch Capital told CNBC-TV18, "We initially were comfortable on Tech Mahindra with a price of around Rs 1800. It has retracted from close to those levels. It is trading slightly expensive close to 13.5-14 times assuming a price of something like Rs 1800 on FY15 estimates."

"If a target has to be kept aside and if I have to look at the structural story as it is panning out in Tech Mahindra, I am bullish. This is a company which for the last six quarters has shown a CQGR revenue growth in dollar terms of 4.6 percent which is excellent even in the September quarter. Its revenue growth of 4.7 percent was far higher than Infosys which came in at 3.8 percent, HCL Technologies at 3.4 percent and Wipro 2.7 percent. So it has done very well on that one important parameter ahead of its more illustrious tier I peers," she said.

She further said, "I am also pretty much excited about the fact that the company notched up margins at 23.3 percent which was more than a 200 basis points jump sequentially. Of course partly due to the rupee depreciation the performance across verticals has been very encouraging. Telecom still accounts for 47 percent of their revenues and grew 2.5 percent sequentially."

"Unlike other tech companies this is a company which does not rely on the US geography. Emerging markets are where most of its revenues come from and emerging markets as geography grew 9 percent plus for this company sequentially and Europe which is again a very important market grew 8 percent sequentially," Verma added.