IDFC-SSKI maintains ‘Outperformer’ view on Tech Mahindra

MUMBAI: IDFC-SSKI Securities in its result update note has reiterated its ���Outperformer��� rating on Tech Mahindra (TechM). It expects the stock to touch target price of Rs 1110 in next 12 months.

���TechM���s organic business has bottomed out and we expect a steady growth. Adjusted for embedded value of ~3.8 shares of M-Sat at 25% holding company discount, TechM trades at ~12x FY11E PER ��� at a significant discount to tier 1 peers.

Reiterate Outperformer on the stock with a target price of Rs1,110 valuing TechM organic business at 15x FY11E core EPS (Rs780) and adding value of M-Sat at 25% holding company discount (Rs 330 per TechM share),��� the report said.