Brokerages Bullish on Tech Mahindra After Q1 Results

Brokerages Bullish on Tech Mahindra After Q1 Results
Brokerages Bullish on Tech Mahindra After Q1 Results

By Aditya Raghunath

Investing.com — Tech Mahindra Ltd (NS:) beat analysts’ estimated for Q1 Fy22 when it reported a net profit of Rs 1,353.2 crore, an increase of 30.8% compared to Rs 1,081.4 crore in the March 2021 quarter. The stock rose 7.08% on July 30 to close at Rs 1,207.7.

Analysts are bullish on the stock and estimate that it can go higher. Citi has given a buy call on the stock with a target of Rs 1,380. It has raised its FY22/23 EPS estimate by 3-4% and says that the company is one of the top picks in the IT sector.

Bernstein has retained its outperform call on the stock, and has raised its target price to Rs 1,330 from Rs 1,200. It has forecasted that Tech Mahindra’s revenue will grow in double digits for FY22, and has increased its estimates for FY22/23 EPS by 4.3% and 4% respectively.

Prabhudas Lilladher has maintained its buy call on the stock with a target price of Rs 1,494. It said, “We are assigning target multiple of 20X (earlier 17X) on Sep-23 EPS of INR of 74.7 (35% discount to TCS (NS:) 5-year average + 2SD of 30.6X) to arrive at a TP of INR 1494 (earlier: 1237).” This target has a potential upside of over 23% from its closing price.

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