Tech Mahindra Ltd. (TECHM) - Stock Overview & Analysis

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TECHMTech Mahindra Ltd.

₹1549-0.11%

Market Cap

₹1,47,500.13 Cr

Stock P/E

36.51

ROCE

12.02%

ROE

8.89%

Book Value

₹298.72

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No recent news available for this stock.

Shareholding

Holdings

Distribution

Promoter

Institution

Public

Others

Financials

YoY Net Sales

EPS Growth

Operating Margin

From Last Concall

POSITIVES

•
Margin expansion has continued; the company notes seventh consecutive quarter of margin expansion.
•
Large deal momentum is strong, with quarterly deal wins at $809 million and a 44% YoY increase in LTM terms.

NEGATIVES

•
Manufacturing and Auto exposure have weakened; demand in manufacturing broadly and auto has slowed amid tariff-related uncertainty.
•
Quarterly margin headwinds from Comviva seasonality, higher visa costs, and lower utilization constrain margin expansion.

Peers Summary

Sector Leader

Tech Mahindra Ltd. is positioned as a strong performer within its peer group, showcasing competitive profitability metrics despite lower growth rates compared to some peers. The company exhibits low debt levels, making it financially stable. However, it is slightly undervalued in terms of PEG ratio when compared to peers, indicating potential for future appreciation.

Key Points

• Tech Mahindra Ltd. has a low debt-equity ratio of 0.0581, indicating financial stability.
• Despite lower immediate revenue growth, it maintains decent profitability metrics, especially in terms of EBITDA margin.
• The PEG ratio suggests potential undervaluation, making it an attractive pick for growth investors.

Top Performers

Tata Consultancy Services Ltd.

Highest ROE at 52.94% and lowest PE at 23.22, indicating both strong profitability and reasonable valuation.

Infosys Ltd.

Consistent growth with a solid EPS growth rate and high profitability metrics.

HCL Technologies Ltd.

Strong revenue growth and profitability with good efficiency ratios.