Neutral on Tech Mahindra, target price Rs 1220: Motilal Oswal

Motilal Oswal has neutral call on Tech Mahindra with a target price of Rs 1220. The current market price of Tech Mahindra Ltd. is Rs 1127.75. 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 109282.55 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 10484.90 Crore, up 7.40 % from last quarter Total Income of Rs 9762.50 Crore and up 10.11 % from last year same quarter.


Investment Rationale
The brokerage continues to stay on the sidelines on TECHM as it sees its stronger business performance as balanced by elevated operational metrics in a supply constrained environment. It also awaits clarity on the impact of 5G spend on growth, given the repurposing of budgets in 5G, which should taper down the momentum unlike previous cycles.

Promoter/FII Holdings
Promoters held 35.7 per cent stake in the company as of June 30, 2021, while FIIs held 36.2 per cent, DIIs 16.7 per cent and public and others 11.4 per cent.