Analysts see further gains in Tech Mahindra

By Tarun Kochar

MUMBAI: Tech Mahindra rose 7.3% in four sessions to close at ?500.10 on the BSE Monday, but most analysts expect it to gain further with them upbeat on the IT company’s efforts to improve margin and its focus on digital transformation.

As many as 29 analysts, including from ICICI and Kotak, have a ‘buy’ or a similar recommendation on the stock, Bloomberg data showed on Monday.

ICICI Securities and Kotak maintained their ‘add’ rating on the stock, with a target price of Rs 545. ICICI projected the company’s revenue to grow 7.6% in dollar terms inFY19 and said there is scope for improvement in margins, driven by productivity gains and turnaround in acquisitions like LCC and Comviva.

Morgan Stanley, however, has an ‘equal weight’ rating, and has a target price of Rs 500.