Buy This Software Stock For 10% Gain, To Go Ex-Dividend In 2 Weeks For A Solid Rs 45 Per Share

BNP Paribas has a buy call for the Tech Mahindra Stock for a target price of Rs 1120 apiece with a current market price of Rs 1005 apiece. The brokerage has given a time period of 1 year for the current market price to reach the specified target price. Tech Mahindra offers innovative and customer-centric digital experiences, enabling enterprises, associates and the society to rise.

It seeks to leverage next-generation technologies including 5G, Blockchain, Quantum Computing, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers.

1. Tech Mahindra Stock Outlook

The current market price of Tech Mahindra is Rs 1020 apiece. It has touched a 52-week high and low at Rs 1838 apiece and Rs 890 apiece, respectively. Today it has gained 1.07% in the trading.

Presently, it is trading at a discount of 44% from its highs. The PE of the stock is 17.84 which is lesser than sector PE of 28.39. The EPS is recorded at 57.23 and dividend yield is 4.41%. The market capitalization of tech Mahindra Ltd is 99,274 crore. It is a company with high TTM EPS. Also, brokers have upgraded recommendation or target price for the stock.

2. Tech Mahindra Q4 Results

For the quarter ended March 31, 2022, Tech Mahindra declared a consolidated total income of Rs 12436.08 Crore, up 6.53 % from last quarter Total Income of Rs 11673.90 Crore. It announced a net profit after tax of Rs 1545 Crore in the latest quarter.

3. Tech Mahindra to Pay 300% final dividend and 300% special dividend

Tech Mahindra has declared 300% final dividend and 300% special dividend on May 13, 2022. The board of directors of Tech Mahindra in the filing dated May 13, 2022 said, "The Board of Directors have recommended a Final dividend of Rs. 15/- per share and a special dividend of Rs 15/- per share on par value of Rs.5/- (600%) for the financial year ended 31ST March, 2022, subject to approval from the members of the Company at the forthcoming Annual General Meeting. The Final dividend, if approveurd, will be paid by 9 August, 2022. This dividend is in addition to Special Dividend of Rs.15/- per share paid as interim dividend in November 2021. The total dividend for FY 2021-22 will be Rs. 45/- per share on par value of Rs.5/- (900%)."

Ex-dividend Date: The ex-dividend date is 21 July, 2022.

4. Tech Mahindra Ltd Dividend History

Tech Mahindra has a good dividend record and regularly declared dividend in the last 5 years. The company has declared dividend 23 times since 2007, according to Dion Global Solutions Limited. And, Tech Mahindra has declared a 900% equity dividend for the year ending March 2022 i.e. Rs 45 per share, which is a solid dividend.

5. About Tech Mahindra Company

It came into existence in 1986. The Large Cap company operates in IT Software sector. The current market capitalization of Tech Mahindra is Rs 99,274 core at the time of writing the report. Tech Mahindra is the only Indian company in the world to receive the HRH The Prince of Wales' Terra Carta Seal for its commitment to creating a sustainable future. It has emerged as the fastest growing brand in 'brand strength' and amongst the top 7 IT brands globally, according to its website.

Disclaimer

The stock has been recommended by BNP Paribas. 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. Goodreturns.in advises users to check with certified experts before taking any investment decisions.