Decent return expected from Tech Mahindra at current price: Gaurang Shah

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services in a chat with ET Now gives his take on Tech Mahindra.

Tech Mahindra in fact a buy call coming in there with a target price of 1165 the results had came in were a little bit above expectations but do you believe that the margin pressure will play spoil sport?

I don’t think so and going forward with the hiring back on track and of course with the scenario as far as the Asia Pacific region is concerned we feel that a stock idea like a Tech Mahindra could definitely be a much more positive as far as return on your investment is concerned.

There were issues about BT and the AT&T recently but we have heard the management also very clearly that the business is going to continue going forward like good old times and not much of negativity and of course the company is also able to get more clients into its net rather than concentrating on BT which may be about 3-4 quarters of about a year back was a concern because of large part of the revenues used to come from BT not that it is not now but considerable reduction has come into affect. We feel that from the current market price its somewhere around 720-730 you could definitely get a decent return of roundabout 1165 to 1170 with a one year time horizon again over here.