Emkay Global recommends buying Tech Mahindra at a price target of Rs 1870.

Emkay Global recommends investing in Tech Mahindra NSE 1.20 percent with a target price of Rs 1870 and a dividend yield of 1.20 percent. Stock in Tech Mahindra is currently trading at Rs 1573.95 per share on the Indian stock exchange.

According to the analyst, if the stock price of Tech Mahindra Ltd. reaches the target within one year, the stock will be considered successful.

With a market capitalization of Rs 156254.93 crore, Tech Mahindra Ltd. is a large cap company that operates in the Information Technology Software sector. The company was founded in the year 1986 and has a market capitalization of Rs 156254.93 crore.

Tech Mahindra Ltd.’s key products and revenue segments for the fiscal year ending March 31, 2021 are Software Services and Infrastructure Services.

Emkay Global recommends buying Tech Mahindra at a price target of Rs 1870.
Emkay Global recommends buying Tech Mahindra at a price target of Rs 1870.

Accounting and financial results are important. A total income of Rs 11163.45 Crore was reported by the company for the quarter ended September 30, 2021, representing an increase of 6.47 percent over the previous quarter’s total income of Rs 10484.90 Crore and a 17.64 percent increase over the same quarter last year’s total income of Rs 9489.30 Crore. After tax, the company earned Rs 1340.95 crore in the most recent quarter, according to the most recent earnings report.

Arguments in Support of the Investment

After taking into account the positive results in the second quarter and the recently announced acquisitions, the brokerage expects EPS to rise by 1.3-2.6 percent in fiscal years 22-24. This stock maintains a Buy rating, with a revised Sep’22 TP of Rs1,870 and a 25x Sept’23E EPS multiple (up from 23x previously). Due to higher medium-term growth expectations, this is the case.

The project is being promoted by FII Holdings, a private equity firm.

According to the company’s financial statements as of September 30, 2021, promoters owned 35.7 percent of the company, while foreign institutional investors owned 35.55 percent and domestic institutional investors owned 16.9 percent.

Read More: Tech Mahindra’s second-quarter results show a 26 Percent Growth


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