Buy Tech Mahindra, target price Rs 1850: ICICI Direct

ICICI Direct has buy call on Tech Mahindra with a target price of Rs 1850. The current market price of Tech Mahindra Ltd. is Rs 1600.5. Time period given by analyst is 3 months 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 155619.76 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 30-09-2021, the company reported a Consolidated Total Income of Rs 11163.40 Crore, up 6.47 % from last quarter Total Income of Rs 10484.90 Crore and up 17.64 % from last year same quarter Total Income of Rs 9489.30 Crore. Company reported net profit after tax of Rs 1341.70 Crore in latest quarter.

Investment Rationale
The brokerage expects stock to resolve higher and gradually head towards Rs 1850 as it is 138.2% extension of mid October rally (| 1360-1630)

Promoter/FII Holdings
Promoters held 35.7 per cent stake in the company as of 30-Sep-2021, while FIIs owned 35.55 per cent, DIIs 16.9 per cent.