HSBC maintains buy on Tech Mahindra, target price Rs 800

HSBC has maintained buy rating on Tech Mahindra in the long term with a target price of Rs 800. The stock ended flat at Rs 754.55 on Wednesday while the BSE Sensex closed 220.03 points up at 40,051.87.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 8653.00 crore, down 2.69 % from last quarter sales of Rs 8892.30 crore and up 4.55% from last year same quarter sales of Rs 8276.28 crore. The company has reported net profit after tax of Rs 956.90 Crore in latest quarter.


Investment Rationale

Most IT companies have alluded to stronger growth and a positive outlook for telecoms IT demand, said HSBC. This is positive reinforcement to overall growth in spend by the sector, which should benefit Tech Mahindra, the brokerage said. Tech Mahindra recently announced a large deal with AT&T and more could be in the pipeline, said HSBC.