Analysts bullish on Tech Mahindra

Mumbai: Most brokerages have raised the target price on Tech Mahindra after it reported strong earnings for the quarter ended September.

Morgan Stanley, CLSA, Kotak Institutional Equities and Citigroup raised target prices by 2-14% while Jefferies raised target price the most, by nearly 37% and also upgraded the stock to buy from hold.
Jefferies raised earnings estimates on Tech Mahindra by 2-12% to factor in improving growth outlook in the communications vertical and the better-than-expected earnings in the September quarter. "We expect Tech Mahindra to deliver a 10.8% CAGR (compounded annual growth rate) in constant currency revenues over FY22-FY24," said Jefferies.

CLSA said risk-reward is favourable at 21 times FY23 estimated earnings per share, despite a 35% rally in the last three months.


Shares of Tech Mahindra ended up 2.5% at ₹1,562.90 on Tuesday after logging a record high of ₹1,629.40 during the day.