Sharekhan Picks IT Software Stock To Buy Amid Scope For Margin Improvement

Sharekhan has recommended investors to buy large cap IT Software stock, Tech Mahindra Ltd with target price of Rs 1220 apiece. Current market price of Tech Mahindra Ltd is Rs 1090.55 apiece, implying a return of 12%. The stock gave 8% return in last 1-month and 2% return in last 6-months. Check details below:

Tech Mahindra Ltd Stock Performance & Return: Current market price of Tech Mahindra is Rs 1090.55 apiece with intraday gain of 0.47%. Its 52-week high is Rs 1574.80 apiece and 52-week low is Rs 944.10 apiece, respectively. Its market capitalisation is Rs 1,06,220.08 crore. The stock declined 25% in last 1-year, delivered return of 47% in last 3-years, and 76% in last 5-years.

Tech Mahindra Ltd Valuation: According to Sharekhan, "We expect the outlook for FY24 to be uncertain as highlighted by the company due to concerns of delays in decision making on account of global headwinds with possibility of slow gradual recovery. However, we maintain Buy rating on the stock with an unchanged price target (PT) of Rs. 1220 given the industry leading growth in BPS business, stable to healthy outlook on its verticals and scope for margin improvement. We advise investors to adopt a staggered approach to invest from long-term perspective.

Tech Mahindra Ltd About: Incorporated in 1986, TechM was formed with a joint venture between Mahindra & Mahindra and British Telecom Plc, under the name of Mahindra British Telecom. The company has been providing end-to-end services to telecom OEMs and service providers. Over the years, the company has acquired Comviva Technologies, LCC, and Hutchison Global Services to fill gaps in its service offerings in the telecom space. Notably, post the acquisition of Satyam, TechM entered the enterprise solutions space and became the fifth largest Indian IT player.

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective 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 decision.