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Insights

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  • Tech Mahindra’s export revenues are over 93%. It derives 47.5% revenue from the US, 26.% from Europe and 26.5% from the rest of the world. How the tech spending by US companies is taking place is something to keep an eye on.

  • For FY-21, the communication vertical remained the main stay with revenue share of 39.7 % of the total business. It is one of the highest top-vertical revenue concentrations among IT companies. Some of the other verticals like BFSI and media and entertainment witnessed marginal increase in contribution to overall revenue. What needs to be watched is whether the move to 5G brings in additional growth in the main stay telecom segment or not.

  • The current high liquidity in global markets means that gains in terms of US dollar is likely to remain subdued. The boost given by the currency is expected to remain muted for some time.

  • Like all other IT companies, there will be a strong watch on what the new administration in the US will do with the H1-B visa issue, although most companies have been able to factor the squeeze by the earlier administration into their strategies.

InsightsTech Mahindra Ltd.

  • Geographical mix

    Tech Mahindra’s export revenues are over 93%. It derives 47.5% revenue from the US, 26.% from Europe and 26.5% from the rest of the world. How the tech spending by US companies is taking place is something to keep an eye on.

  • High concentration risk

    For FY-21, the communication vertical remained the main stay with revenue share of 39.7 % of the total business. It is one of the highest top-vertical revenue concentrations among IT companies. Some of the other verticals like BFSI and media and entertainment witnessed marginal increase in contribution to overall revenue. What needs to be watched is whether the move to 5G brings in additional growth in the main stay telecom segment or not.

  • Currency gains

    The current high liquidity in global markets means that gains in terms of US dollar is likely to remain subdued. The boost given by the currency is expected to remain muted for some time.

  • White House moves

    Like all other IT companies, there will be a strong watch on what the new administration in the US will do with the H1-B visa issue, although most companies have been able to factor the squeeze by the earlier administration into their strategies.

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Key Metrics

  • 28.94
  • 49.63
  • 1,39,176
  • 5
  • 5.30
  • 3.13
  • 5.00
  • 0.93
  • 1,440.53

Returns

  • 1 Day-0.78%
  • 1 Week-1.83%
  • 1 Month18.75%
  • 3 Months39.38%
  • 1 Year97.33%
  • 3 Years87.56%
  • 5 Years206.15%

Tech Mahindra Stock Analysis

EARNINGS
FUNDAMENTAL
RELATIVE VALUATION
RISK
PRICE MOMENTUM

NO RATING (NR)

NEGATIVE (1-3)

NEUTRAL (4-7)

POSITIVE (8-10)

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Recommendations

Recent Recos

BUY

Current

Mean Recos by 40 Analysts

Strong
Sell
SellHoldBuyStrong
Buy

  • Target₹1700
  • OrganizationEmkay Global Financial Services
  • BUY
  • Target₹1520
  • OrganizationICICI Securities
  • BUY

Analyst Trends

RatingsCurrent1 Week Ago1 Month Ago3 Months Ago
Strong Buy17171718
Buy14141212
Hold8886
Sell1133
Strong Sell----
# Analysts40404039

Financials

  • Income (P&L)

  • Balance Sheet

  • Cash Flow

  • Ratios

  • MD&A

  • Insights

    • Employee & Interest Expense

      Company has spent less than 1% of its operating revenues towards interest expenses and 50.98% towards employee cost in the year ending Mar 31, 2021. (Source: Consolidated Financials)
    Quarterly | AnnualJun 2021Mar 2021Dec 2020Sep 2020Jun 2020
    Total Income10,484.909,762.509,868.009,489.309,522.40
    Total Income Growth (%)7.40-1.073.99-0.35-2.59
    Total Expenses8,652.508,176.708,110.008,040.508,189.00
    Total Expenses Growth (%)5.820.820.86-1.81-6.50
    EBIT1,832.401,585.801,758.001,448.801,333.40
    EBIT Growth (%)15.55-9.8021.348.6531.07
    Profit after Tax (PAT)1,353.201,081.401,309.801,064.60972.30
    PAT Growth (%)25.13-17.4423.039.4920.95
    EBIT Margin (%)17.4816.2417.8215.2714.00
    Net Profit Margin (%)12.9111.0813.2711.2210.21
    Basic EPS (₹)15.4312.3714.9812.1811.13
    Quarterly | AnnualJun 2021Mar 2021Dec 2020Sep 2020Jun 2020
    Total Income8,171.207,713.807,851.307,561.407,436.20
    Total Income Growth (%)5.93-1.753.831.68-15.78
    Total Expenses6,827.006,171.806,196.706,288.406,316.00
    Total Expenses Growth (%)10.62-0.40-1.46-0.44-13.30
    EBIT1,344.201,542.001,654.601,273.001,120.20
    EBIT Growth (%)-12.83-6.8129.9813.64-27.47
    Profit after Tax (PAT)986.201,167.801,255.60961.50854.20
    PAT Growth (%)-15.55-6.9930.5912.56-38.63
    EBIT Margin (%)16.4519.9921.0716.8415.06
    Net Profit Margin (%)12.0715.1415.9912.7211.49
    Basic EPS (₹)10.1612.0612.979.938.83
    Quarterly | Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Total Revenue38,642.2038,060.1035,276.3032,189.4029,918.40
    Total Revenue Growth (%)1.537.899.597.5911.08
    Total Expenses32,690.5032,996.8029,667.6027,310.7026,063.10
    Total Expenses Growth (%)-0.9311.228.634.7912.93
    Profit after Tax (PAT)4,428.004,033.004,297.603,799.802,812.90
    PAT Growth (%)9.79-6.1613.1035.08-6.01
    Operating Profit Margin (%)16.1814.2516.5216.3813.67
    Net Profit Margin (%)11.6910.9312.3712.349.65
    Basic EPS (₹)50.6446.2148.4743.0232.14
    Quarterly | Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Total Revenue30,562.7031,591.6028,179.7025,391.9024,058.30
    Total Revenue Growth (%)-3.2612.1110.985.548.97
    Total Expenses25,036.1026,259.4022,752.4020,485.4020,179.60
    Total Expenses Growth (%)-4.6615.4111.071.5211.15
    Profit after Tax (PAT)4,239.104,534.504,380.403,999.303,047.30
    PAT Growth (%)-6.513.529.5331.24-5.36
    Operating Profit Margin (%)18.8518.4720.0921.0317.01
    Net Profit Margin (%)14.3015.5116.0916.9013.15
    Basic EPS (₹)43.7646.8944.5840.8431.37

    All figures in Rs Cr, unless mentioned otherwise

  • Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Total Assets39,678.0037,353.5033,446.9030,437.2026,066.50
    Total Assets Growth (%)6.2211.689.8916.7715.72
    Total Liabilities13,203.1013,916.8011,454.409,855.007,934.90
    Total Liabilities Growth (%)-5.1321.5016.2324.2021.87
    Total Equity26,474.9023,436.7021,992.5020,582.2018,131.60
    Total Equity Growth (%)12.966.576.8513.5213.22
    Current Ratio (x)2.462.122.092.292.55
    Total Debt to Equity (x)0.070.110.070.090.07
    Contingent Liabilities7,013.006,867.906,221.809,367.308,930.50
    Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Total Assets33,374.7030,322.0030,339.6026,798.8023,732.80
    Total Assets Growth (%)10.07-0.0613.2112.9214.93
    Total Liabilities7,128.506,818.208,461.806,027.305,612.20
    Total Liabilities Growth (%)4.55-19.4240.397.40-4.32
    Total Equity26,246.2023,503.8021,877.8020,771.5018,120.60
    Total Equity Growth (%)11.677.435.3314.6322.57
    Current Ratio (x)3.363.162.282.852.80
    Total Debt to Equity (x)0.000.000.000.010.01
    Contingent Liabilities7,853.607,816.107,329.908,156.907,787.30

    All figures in Rs Cr, unless mentioned otherwise

  • Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Net Cash flow from Operating Activities8,093.804,358.104,432.003,553.504,071.40
    Net Cash used in Investing Activities-5,450.101,028.60-2,116.40-3,359.70-2,889.50
    Net Cash flow from Financing Activities-2,986.90-4,465.50-2,251.20-269.40-1,570.90
    Net Cash Flow-326.30974.0076.60-35.20-392.50
    Closing Cash & Cash Equivalent2,690.403,016.702,042.701,966.102,001.30
    Closing Cash & Cash Equivalent Growth (%)-10.8247.683.90-1.76-16.40
    Total Debt/ CFO (x)0.210.560.320.490.30
    Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Net Cash flow from Operating Activities6,851.902,380.403,634.403,358.303,332.20
    Net Cash used in Investing Activities-5,620.803,252.10-1,542.50-2,271.10-2,586.50
    Net Cash flow from Financing Activities-2,066.10-4,842.40-2,035.90-1,209.50-1,478.80
    Net Cash Flow-815.80843.9068.90-83.50-736.30
    Closing Cash & Cash Equivalent988.001,803.80958.10888.20971.70
    Closing Cash & Cash Equivalent Growth (%)-45.2388.277.87-8.59-43.11
    Total Debt/ CFO (x)0.000.000.000.040.05

    All figures in Rs Cr, unless mentioned otherwise

  • Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Return on Equity (%)17.8118.4821.1820.1617.11
    Return on Capital Employed (%)20.8319.8824.8322.3820.25
    Return on Assets (%)11.1510.7912.8412.4810.79
    Interest Coverage Ratio (x)35.2127.3943.1131.0430.98
    Asset Turnover Ratio (x)95.4098.69103.87101.10111.79
    Price to Earnings (x)19.5712.2116.0514.8614.35
    Price to Book (x)3.482.263.402.992.45
    EV/EBITDA (x)11.327.309.969.077.82
    EBITDA Margin (%)20.0318.1719.7719.9017.02
    Annual FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
    Return on Equity (%)16.9420.3521.2120.4618.04
    Return on Capital Employed (%)20.3921.9324.3122.8520.70
    Return on Assets (%)12.7014.9514.4314.9212.84
    Interest Coverage Ratio (x)88.4580.94126.9270.3061.79
    Asset Turnover Ratio (x)88.8196.3889.7188.2997.60
    Price to Earnings (x)22.6812.0317.4515.6514.68
    Price to Book (x)3.842.453.703.202.65
    EV/EBITDA (x)15.188.6912.2610.789.38
    EBITDA Margin (%)21.0920.7522.5123.8019.70
  • MANAGEMENT DISCUSSION AND ANALYSIS (FY 19-20)

    • Revival in IT spends

      FY20 began with the digital transformation trend gaining further momentum, leading to substantial growth in our portfolio. Across the dynamic global business landscape, disruptive emerging technologies continued to drive IT spends. The year saw the revival of IT-modernisation spends in the market, subdued in the past few years. We saw resurgence of multi-year large outsourcing contracts as clients crystalized their transformation roadmaps.

    • Some sector may witness slow down

      Airlines, Transportation, Tourism, Hospitality sectors, followed by Retail may hold their IT projects but can expect an aggressive push for cost reduction from vendors, but increased demand for cyber security and contact centres in the near term

    • Merger and acquisition risks

      The Company acquired multiple companies in the past years. M&As and its integrations, by nature, involve risks like failure to achieve strategic objectives, offset financial loss, cultural and financial integration etc.

Financial InsightsTech Mahindra Ltd.

  • Income (P&L)
    • Employee & Interest Expense

      Company has spent less than 1% of its operating revenues towards interest expenses and 50.98% towards employee cost in the year ending Mar 31, 2021. (Source: Consolidated Financials)

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Forecast

  • PRICE

  • REVENUE

  • EARNINGS

  • Forecast

    Forecast

    Current Year - 2021

    1,436.30-11.35 (-0.78%)

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  • Forecast

    • Estimated
    • Actual

    Forecast

    Analysis for

    All values are in (Cr), unless mentioned otherwise

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  • Forecast

    • Estimated
    • Actual

    Forecast

    Analysis for

    All values are in , unless mentioned otherwise

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Technicals

  • Buy / Sell Signals

  • Price Analysis

  • Pivot Levels & ATR

  • Chart

  • Bullish / Bearish signals for Tech Mahindra Ltd. basis selected technical indicators and moving average crossovers.

    5 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 1 Sep 2021

    5D EMA: 1437.83

    Last 4 Sell Signals:30 Aug 2021

    Average price decline of -2.12% within 7 days of Bearish signal in last 5 years

    Heikin-Ashi Changeover

    Bullish indication on daily chart

    • Prev. Close Price

      1445.51

    • LTP

      1436.30

    Formed on:1 Sep 2021

    On daily price chart, Heikin-Ashi candle changed from Red to Green

    Show More

  • 46%

    Positive Movement since
    1st Jan 2005 on basis

    53%

    Negative Movement since
    1st Jan 2005 on basis

    Exclude

  • Pivot Levels

    R1R2R3PIVOTS1S2S3
    Classic1458.231481.671518.521444.821421.381407.971371.12

    Average True Range

    5 DAYS14 DAYS28 DAYS
    ATR37.6936.7133.60

Peer Comparison

  • Stock Performance

  • Ratio Performance

    • CHART
    • TABLE

    Insights

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 89.04% as compared to Nifty 100 which gave a return of 43.0%. (as of last trading session)
    • Stock Returns vs Nifty IT

      Stock generated 89.04% return as compared to Nifty IT which gave investors 115.73% return over 3 year time period. (as of last trading session)
    • 1D
    • 1W
    • 1M
    • 3M
    • 6M
    • 1Y
    • 5Y
  • Insights

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 89.04% as compared to Nifty 100 which gave a return of 43.0%. (as of last trading session)
    • Stock Returns vs Nifty IT

      Stock generated 89.04% return as compared to Nifty IT which gave investors 115.73% return over 3 year time period. (as of last trading session)

    Ratio Performance

    NAMEP/E (x)P/B (x)ROE %ROCE %ROA %Rev CAGR [3Yr]OPMNPMBasic EPSCurrent RatioTotal Debt/ Equity (x)Total Debt/ CFO (x)
    Tech Mahindra28.945.2617.8120.8311.156.2116.1811.4950.642.460.070.21
    TCS39.9115.7837.5247.2124.809.6027.7819.8386.712.910.000.00
    Infosys35.189.3125.3431.7317.8511.5526.6919.3345.612.540.000.00
    Wipro30.206.3919.6624.1013.044.0523.2417.5219.112.270.120.46
    HCL Tech27.685.2618.6023.7812.9313.6521.7014.8141.072.480.060.20
    Add More

    Annual Ratios (%)

    See All Parameters

Peers InsightsTech Mahindra Ltd.

  • Stock Returns vs Nifty 100

    Stock gave a 3 year return of 89.04% as compared to Nifty 100 which gave a return of 43.0%. (as of last trading session)

  • Stock Returns vs Nifty IT

    Stock generated 89.04% return as compared to Nifty IT which gave investors 115.73% return over 3 year time period. (as of last trading session)

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Shareholding Pattern

  • QOQ Change

  • Total Shareholdings

  • Showing Shareholding as on 30 Jun 2021

    Category30 Jun 202131 Mar 202131 Dec 202030 Sep 2020
    Promoters35.7335.7635.7935.82
    Pledge0.000.000.000.00
    FII36.1538.3239.0537.96
    DII16.5114.3913.5414.23
    Mutual Funds9.488.728.398.96
    Others11.6111.5311.6211.99
  • Showing Shareholding as on 30 Jun 2021

    CategoryNo. of SharesPercentage% Change QoQ
    Promoters34,62,25,42535.73 %-0.03
    Pledge00.00 %0.00
    FII35,03,38,57036.15 %-2.17
    DII15,98,66,30916.51 %2.12
    MF9,18,53,6339.48 %0.76
    Others11,25,58,39711.61 %0.08

MF Ownership

    • 650.53

      Amount Invested (in Cr.)

    • 2.3%

      % of AUM

    • 7.86

      % Change (MoM basis)

    • 579.64

      Amount Invested (in Cr.)

    • 2.76%

      % of AUM

    • -2.04

      % Change (MoM basis)

    • 469.39

      Amount Invested (in Cr.)

    • 4.53%

      % of AUM

    • 0.00

      % Change (MoM basis)

MF Ownership as on 31 July 2021

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F&O Quote

  • Futures

  • Options

    • Expiry

    Price

    1,438.00-12.35 (-0.85%)

    Open Interest

    96,24,000600 (0.01%)

    OpenHighLowPrev CloseContracts TradedTurnover (₹ Lakhs)
    1,455.751,465.001,429.101,450.352,00234,651.02

    Open Interest as of 01 Sep 2021

Corporate Actions

  • Board Meeting/AGM

  • Dividends

  • Others
  • Meeting DateAnnounced onPurposeDetails
    Jul 30, 2021Apr 26, 2021AGMBook closure from Jul 27, 2021 to Jul 30, 2021
    Jul 29, 2021Jul 08, 2021Board MeetingQuarterly Results
    Apr 26, 2021Apr 05, 2021Board MeetingAudited Results & Dividend
    Jan 30, 2021Jan 19, 2021Board MeetingQuarterly Results
    Jan 29, 2021Jan 19, 2021Board MeetingQuarterly Results
  • TypeDividendDividend per ShareEx-Dividend DateAnnounced on
    Special300%15.0Jul 23, 2021Apr 27, 2021
    Final300%15.0Jul 23, 2021Apr 26, 2021
    Interim0%0.0Oct 29, 2020Oct 19, 2020
    Special300%15.0Oct 29, 2020Oct 19, 2020
    Final100%5.0Jul 23, 2020Apr 30, 2020
  • All TypesEx-DateRecord DateAnnounced onDetails
    SplitsMar 19, 2015Mar 20, 2015Jan 30, 2015Split: Old FV10.0| New FV:5.0
    BonusMar 19, 2015Mar 20, 2015Jan 30, 2015Bonus Ratio: 1 share(s) for every 1 shares held

About Tech Mahindra

Tech Mahindra Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 139,175.85 Crore) operating in IT Software sector. Tech Mahindra Ltd. key Products/Revenue Segments include Software Services for the year ending 31-Mar-2020. Show More

  • Executives

  • Auditors

  • AG

    Anand G Mahindra

    Chairman & Non-Exe.Director

    CP

    C P Gurnani

    Managing Director & CEO

    AS

    Anish Shah

    Non Executive Director

    VS

    V S Parthasarathy

    Non Executive Director

    HK

    Haigreve Khaitan

    Independent Director

    MD

    M Damodaran

    Independent Director

    Show More

Key Indices Listed on

Nifty 50, S&P BSE Sensex, Nifty IT, + 33 more

Address

Gateway Building,Apollo Bunder,Mumbai, Maharashtra - 400001

More Details

Brands

Tech Mahindra Share Price Update

Tech Mahindra Ltd. share price moved down by -0.78% from its previous close of Rs 1,447.65. Tech Mahindra Ltd. stock last traded price is 1,436.30

Share PriceValue
Today/Current/Last1,436.30
Previous Day1,447.65

Trending in Markets

DATA SOURCES: TickerPlant (for live BSE/NSE quotes service) and Dion Global Solutions Ltd. (for corporate data, historical price & volume, F&O data). Sensex & BSE Quotes and Nifty & NSE Quotes are real-time and licensed from BSE and NSE respectively. All timestamps are reflected in IST (Indian Standard Time).

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