Buy Tech Mahindra, target price Rs 1730: Emkay Global

Emkay Global has buy call on Tech Mahindra with a target price of Rs 1730. The current market price of Tech Mahindra is Rs 1419. 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 137100.68 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 31-12-2021, the company reported a Consolidated Total Income of Rs 11673.90 Crore, up 4.57 % from last quarter Total Income of Rs 11163.40 Crore and up 18.30 % from last year same quarter Total Income of Rs 9868.00 Crore. Company reported net profit after tax of Rs 1378.90 Crore in latest quarter.

Investment Rationale
The company has internally split BFSI into BFS and Insurance to drive increased focus and accelerate growth. The company is committed to create USD1bn+ vertical in BFSI. The company is focusing on BFSI to drive higher growth and Q3 was soft as there was some degree of seasonality, some programs coming to an end and a timing issue. Demand environment remains strong and the company is seeing growth momentum across various sub sectors.

Promoter/FII Holdings
Promoters held 35.67 per cent stake in the company as of 31-Dec-2021, while FIIs owned 35.36 per cent, DIIs 17.23 per cent.