Tech Mahindra share price fell 2.5 percent on January 31 as poor December quarter results disappointed investors.
Tech Mahindra reported a consolidated net profit of Rs 1,297 crore for the December quarter of the financial year 2022-23, down 5.3 percent. Profit after tax (PAT) stood at Rs 1,368 crore a year ago.
Revenue from operations came in at Rs 13,735 crore, rising 19.9 percent from Rs 11,450 crore in the corresponding quarter of the previous year, the information technology services firm said in an exchange filing.
At 9:30 am, the stock was quoting at Rs 1,009.8 apiece on the NSE, lower by 2.53 percent. The scrip is down over 31 percent in the past one year.
Catch all the market action on our live blog
Here is what brokerages have to say about stock and the company post December quarter earnings:
Nomura
The broking house has kept the 'buy' rating on the stock with a target at Rs 1,260 per share as the revenue was largely in-line, while modest beat on margin front.
The demand moderation and flattish TTM deal wins to weigh on growth in FY24, with TTM TCV of deal wins flat YoY, while H1CY23 likely to be challenging.
The margin has expanded in Q3 and there are enough levers to continue expansion, reported CNBC-TV18.
Morgan Stanley
The research firm has maintained the 'overweight' rating on the stock with a target at Rs 1,120 per share as the Q3 revenue is weaker than expectations and other peers as well.
Despite a sharp decline in attrition rates, margin improvement was soft on QoQ basis. The management commentary on demand was muted, reported CNBC-TV18.
Motilal Oswal
Maintain 'neutral' rating on the stock
Although its current performance remains muted, company's high exposure to the Communications vertical offers a potential opportunity, as a broader 5G rollout can result in a new spending cycle in this space
Near-term growth remains weak and we await greater comfort on margins, said brokerage firm.
Nirmal Bang
Maintains ‘sell’ rating on the stock, target Rs 875
3QFY23 revenue performance was the weakest among the Tier 1 peer set
Post 3QFY23, broking house tweaked its FY24-FY26 EPS estimates modestly
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
