Buy Tech Mahindra, target price Rs 1300: Axis Securities

Axis Securities has buy call on Tech Mahindra with a target price of Rs 1300. The current market price of Tech Mahindra is Rs 1111.7.

Tech Mahindra, incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 108191.71 Crore) operating in IT Software sector.

Tech Mahindra key Products/Revenue Segments include Software Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 13981.70 Crore, up 4.19 % from last quarter Total Income of Rs 13419.65 Crore and up 19.77 % from last year same quarter Total Income of Rs 11673.90 Crore. Company has reported net profit after tax of Rs 1294.30 Crore in latest quarter.

The company’s top management includes Mr.Anand G Mahindra, Ms.Shikha Sharma, Mr.Haigreve Khaitan, Dr.Mukti Khaire, Mrs.M Rajyalakshmi Rao, Ms.Penelope Fowler, Mr.Manoj Bhat, Dr.Anish Shah, Mr.C P Gurnani, Mr.T N Manoharan. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 97 Crore shares outstanding.

Investment Rationale
The brokerage believes Tech Mahindra has a superior services mix and multiple long-term contracts that are well-spread across the verticals, reducing its dependency on any one vertical.

Furthermore, Axis Securities foresee healthy tractions in Communications and Enterprise verticals which will greatly accelerate the company’s revenue growth moving forward.

Promoter/FII Holdings
Promoters held 35.19 per cent stake in the company as of 31-Dec-2022, while FIIs owned 27.95 per cent, DIIs 23.54 per cent.