Tech Mahindra stock hits a record high

Mumbai: Shares of Tech Mahindra hit a record high on Friday after the company surpassed consensus estimate on both revenue and margins despite seasonal headwinds. Brokerages raising target price also lifted the stock.

Shares of Tech Mahindra ended up 7.24 per cent at Rs 1,209.45 after hitting a record high of Rs 1,237 during the day.

CLSA, Antique, Edelweiss, HDFC Securities and Emkay Global retained buy ratings.


Raising estimates by 3 per cent for the ongoing and next financial year, CLSA said the risk reward for Tech Mahindra is favourable given a relatively inexpensive valuation.

“We believe its strong 1Q22 beat and sustained growth outlook could push up the stock’s valuation that at 17 times 12-month forward EPS is at a 40 per cent discount to Infosys (versus 5-year median of 21 per cent),” said CLSA, raising target price to Rs 1,380 from Rs 1,300.

Antique raised target price to Rs 1,550 from Rs 1,200, Edelweiss raised it to Rs 1,620 from Rs 1,450 and Emkay Global raised it to Rs 1,480 from Rs 1,410.