Sustainable margins for Tech Mahindra will be 12-14%: Elara's Ravi Menon

Tech Mahindra posted its Q4 numbers. In an interview to CNBC-TV18, Ravi Menon of Elara shared his readings and outlook on the same.

"It's difficult for them to narrow the margin gap that they have with the peer groups - that is the biggest issue. So I do not think that we can expect a rerating anytime soon. This is now slipping into a tier two territory," said Menon.

Sustainable margins for Tech Mahindra will be between 12 percent and 14 percent but that will be at least 300-400 bps below the peer group, he added.

Watch accompanying video for more details.