Moneycontrol Bureau
Tech Mahindra's shares advanced 1.8 percent intraday Thursday on collaboration with BPM software vendor.
"PNMsoft, a global provider of intelligent BPM software solutions, has collaborated with Indian IT exporter Tech Mahindra to offer superior customer experiences," said the company in its filing to the exchange.
Dinesh Kumar, vice president & head - Microsoft Enterprise solutions at Tech Mahindra said company's strong experience and capabilities in SharePoint and Microsoft technologies along with PNMsoft's products will enable the alliance to extend solutions to its clients in the BPM space.
According to IT analyst, Sarabjit Kour Nangra (of Angel Broking) said the order is a decent win for the company and should deliver around revenues of USD 20-30 million. The company is likely to employ more than 500 highly skilled, qualified and experience resources, she added.
She has maintain buy rating on the stock with a price target of Rs 646. "In recent past, the company has witnessed a strong correction on back of the pre warning on the telecom domain to impact it’s near term performance, making it attractive for long term investors," Nangra said. Tech Mahindra is going to announce its April-June quarter earnings on July 27. Analysts will keenly watch its earnings after the company sees some headwinds & tailwinds in Q1FY16, which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis.
Meanwhile, foreign institutional investors' shareholding in the country's fifth largest IT company declined to 34.23 percent in June quarter from 37.49 percent in March quarter, continuing to fall for the third consecutive quarter. However, domestic institutional investors raised stake to 13.92 percent from 10.41 percent during the same period as Life insurance focused Bluechip Equity Fund itself bought 3.10 percent stake in the company.
Europacific Growth Fund increased its stake in the company to 5.3 percent in June quarter from 4.06 percent in March quarter. Government Pension Fund Global and New Word Fund INC bought 1.4 percent and 1.05 percent stake in the company, respectively. However, Government of Singapore sold 1.05 percent shareholding in the quarter gone by.
At 11:46 hours IST, the scrip of Tech Mahindra was quoting at Rs 474, up Rs 3.90, or 0.83 percent on the BSE.
Posted by Sunil Shankar Matkar
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