Tech Mahindra Stock Price Today: There is a strong rise in the shares of IT services company Tech Mahindra today. In today’s trading the share became stronger by about 13 percent and reached the price of Rs 1347. Whereas on Thursday it closed at Rs 1190. The company announced its quarterly results on April 25 (Tech Mahindra Results)have been issued, which have been weak. However, the management has released a roadmap for the next 3 years, in which the focus has been on growth. Looking at the roadmap for the next 3 years, market expectations have increased and investors are buying into it. However, brokerage houses have a mixed view on the stock. someone invested (Buy Tech MahindraIf someone has advised to sell (Sell Tech MahindraSo someone tried to hold or reduce it.
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Brokerage House Rating and Target
Choice Broking
Rating: BUY
Target price: Rs 1273
Motilal Oswal
Rating: Neutral
Target price: Rs 1210
Centrum Broking
Rating: Reduce
Target price: Rs 1194
Jefferies
Rating: underperofrm
Target price: Rs 1065
HSBC
Rating: hold
Target price: Rs 1300
systematics
Rating: Sell
Target price: Rs 1005
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What does the brokerage house say?
Brokerage house Choice Broking says that the management is focusing on increasing client spending for FY25. Due to which revenue performance may look better in future. The management is hopeful that due to the efforts being made by them, the earnings growth is going to be better in the coming years.
Brokerage house Motilal Oswal says that restructuring efforts are in the right direction and the strategy for FY27 is in place. Investors will wait to see what the outcome of these efforts is before we see any material rerating in the name. The brokerage says we are positive about the restructuring at TECHM under the new leadership and believe the recent steps taken are in the right direction (ie, right-sizing of SBUs, investment in top accounts, vertical delivery team and employee investments). . Before any re-rating, the improvement due to restructuring and new strategy will be kept in mind.
Brokerage house Centrum Broking has kept its rating on the stock ‘Reduce’ in view of challenges in the near-term demand environment and pressure on discretionary spending by clients. The brokerage expects a gradual recovery in FY2025, driven by a surge in recently signed deals. The brokerage expects 8.2 per cent, 45.1 per cent and 64.2 per cent growth in revenue, EBITDA and PAT during FY24-FY26E. However, Centrum has reduced its FY25E and FY26E EPS by 7.0%-7.1%.
Compounders: These companies can become long term compounders, 17 megacaps and multicaps in the list, keep an eye on the shares.
3 year roadmap: focus will be on growth
Tech Mahindra management has announced its vision for FY27, which aims to outperform peers in revenue growth and achieve EBIT margin of 15 per cent by FY27. It also aims for a 30%+ ROCE profile and is expected to generate over 85% FCF returns by FY2027. The focus will be on growing large accounts, winning multi-tower deals, aligning with previous acquisitions, improving cost structure and achieving profitable and predictable growth. The management’s target is to be among the top-3 IT services companies in terms of margins after FY27.
(Disclaimer: The advice to invest in stocks has been given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
