Tech Mahindra Gets A 'Hold' Rating From IDBI Capital After Q2 Results; Here's Why

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Tech Mahindra Ltd. posted a revenue of $ 1,589 million, up by 0.7% constant currency QoQ beats the streets’ estimates (~1.3% more than our expectation), mainly driven by communication, TM&E and Retail, Transport and logistics and Europe/rest of world. Despite softness, company is focused on strengthening its client relationship and expanding the partner ecosystem. Operating margin expanded by 110 bps to 9.6% on the back of operational excellence through Project Fortius. Due to weak discretionary spending environment, company is prioritizing on cost saving projects, partnership with existing clients, adding new logos and focus on better utilization of existing capabilities to drive the growth. Net new deal total contract value during the quarter stood at $ 603 million and was broad based including cards and payment services, Temenos T24 implementation (transformation of core banking) etc. Furthermore, the company emphasizes on building service line capabilities and partnership with hyper-scalers and ISVS. However, we expect turnaround period to elongate due to continued softness in discretionary coupled with seasonality impact. We assume coverage with a target price to Rs. 1,778 with a Hold rating due to sharp rally in the stock prices in the recent past..Click on the attachment to read the full report:.Tech Mahindra Q2 Results Review - Revenue Inline, OPM Beat; Focus On Prioritising Margins: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tech Mahindra Gets A 'Hold' Rating From IDBI Capital After Q2 Results; Here's Why

The brokerage sets target price to Rs. 1,778 with a Hold rating due to sharp rally in the stock prices in the recent past.

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Tech Mahindra Gets A 'Hold' Rating From IDBI Capital After Q2 Results; Here's Why

The brokerage sets target price to Rs. 1,778 with a Hold rating due to sharp rally in the stock prices in the recent past.

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