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Buy This Stock With A Target Price Of Rs. 1,930: Emkay Global Recommends
The brokerage firm Emkay Global initiated a buy call for the stocks of Tech Mahindra's (TechM), for 12.1% return, in 1 year.
Target Price
The Current Market Price (CMP) of Tech Mahindra's is Rs. 1,722. Emkay Global has estimated a Target Price for the stock at Rs. 1,930. Hence this company is expected to give a 12.1% return, in 1 year.
| Stock Outlook | |
|---|---|
| Current Market Price (CMP) | Rs. 1,722 |
| Target Price | Rs. 1,930 |
| 1 year returns | 12.10% |
Company performance
Tech Mahindra's (TechM) revenue was Rs. 378,551 mn in FY 21, which is expected to grow to Rs. 441,776 mn in FY 22. The company's EBITDA stood at Rs. 68,471 mn, which is expected to grow to Rs. 80,750 mn. Additionally, the company's adj. PAT stood at Rs. 44,281 mn, which is expected to grow to Rs. 55,012 mn. Additionally, TechM is going to acquire a 100% stake in Com Tec Co IT Ltd (CTC), the acquisition will strengthen TechM's digital transformation expertise and expand its offerings to high-end digital engineering services. It is also acquiring a 25% stake in SWFT Technologies Ltd. and Surance Ltd.
Comments by Emkay Global
Maintaining a buy rating, Emkay Global said, "CTC acquisition to strengthen Tech Mahindra's insurance and digital engineering capabilities. This is the 10th acquisition announced by TechM in FY22 YTD and underlines its focus on strengthening its digital business under the NXT. The CTC acquisition and investments into Insuretech platforms will strengthen TechM's Insurance capabilities and expand its client portfolio across insurance, reinsurance, and financial services firms. The acquisition will strengthen TechM's digital engineering capabilities and scale up its European presence with the addition of over 700 skilled IT professionals."
About the company
Tech Mahindra offers innovative and customer-centric digital experiences, enabling enterprises, associates. They are a USD 5.1 billion organization, across 90 countries helping 1123 global customers, including Fortune 500 companies. They are focused on leveraging next-generation technologies including 5G, Blockchain, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers. Tech Mahindra has consistently emerged as a leader in sustainability and is recognized amongst the '2021 Global 100 Most sustainable corporations in the World' by Corporate Knights.
Disclaimer
The above stock was picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
(Also read: Buy This Large-cap Cement Stock For Bullish Near-term Returns: Emkay Global Initiates Buy Call)
