Tech Mahindra may test Rs 715, says R Sreesankar

R Sreesankar, head-institutional equities at Prabhudas Lilladher told CNBC-TV18, "Tech Mahindra disappointed in terms of numbers, in terms of weaker quarters the entire tech sector for that matter has disappointed. So, the guidance which is there also probably is not giving you a lot of that big upside in the near-term. So, it may take a couple of quarters for these tepid kind of scenario that has developed especially the slow down that you have seen in the telecom side and it may continue for a couple of quarter before it improves."

"Our analysts estimated that by Q4 you should expect to see 150 basis point increase in the earnings before interest, taxes, depreciation and amortization (EBITDA) margin also coming through. And we have a target of around Rs 715 in Tech Mahindra. We like the stock from a buy point but we do not think that it is going to happen as a tomorrow kind of scenario. It will take some time before it actually starts to see numbers," he said.