Buy Tech Mahindra, target price Rs 1650: Anand Rathi

Anand Rathi has buy call on Tech Mahindra with a target price of Rs 1650. The current market price of Tech Mahindra Ltd. is Rs 1162.1. Time period given by analyst is one year when Tech Mahindra Ltd. price can reach defined target.

Tech Mahindra Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 114190.43 Crore) operating in IT Software sector.

Tech Mahindra Ltd. key Products/Revenue Segments include Software Services for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 12436.08 Crore, up 6.53 % from last quarter Total Income of Rs 11673.90 Crore and up 27.39 % from last year same quarter Total Income of Rs 9762.50 Crore. Company reported net profit after tax of Rs 1545.24 Crore in latest quarter.

Investment Rationale
The company continues to get positive demand across sectors, however it is facing higher employee attrition and margin pressure due to higher expenses. The brokerage maintains BUY rating on the stock with a revised target price of ₹1650 per share.

Promoter/FII Holdings
Promoters held 35.26 per cent stake in the company as of 31-Mar-2022, while FIIs owned 34.27 per cent, DIIs 18.06 per cent.