Brokers’ call: Citi stays neutral on Tech Mahindra

Citi analysts said they do not see “compelling value proposition” in Tech Mahindra’s recent acquisition of Hutchison Global Services, and maintained its ‘Neutral’ rating on the stock.

Citi said this adds further call centre industry exposure to the company, but its 45-50 per cent revenues would continue to be from telecom. “Given continued challenges in the demand environment, our concerns on TechM’s core business remain,” it said.