Bullish on Tech Mahindra: Nitin Raheja

In a chat with ET Now, Nitin Raheja, CIO, AQF Advisors, shares his views on Tech Mahindra.

ET Now: What is the deal with Tech Mahindra, it is no longer a midcap stock, it is a part of the Nifty 50. Price multiples are not stretched but they are not cheap, how Tech Mahindra managed to differentiate itself in a crowded IT market?

Nitin Raheja: In the last couple of quarter performances, what has driven Tech Mahindra is the fact that it changed its margin profile post the absorption of Satyam within it. Its margins have been robust and top line growth has been very strong. The headline numbers and the management guidance seem to suggest that they are optimistic about Tech Mahindra scaling up in the next couple of years. That is, probably, the reason why the market is looking so positively on Tech Mahindra.