Tech Mahindra Ltd. surged over 13% to its highest since June 2012 after its Chief Executive Officer Mohit Joshi announced a detailed three-year turnaround plan. The roadmap was announced with inline fourth-quarter earnings.
Key levels to watch
Key support: Rs1,162.9 (One-week low)
Resistance level: Rs1,410.5 (Three-month high)
Brokerages View
CLSA believes that the 15% margin target is now elongated, has given a valuation of 20.8-times based on its FY27 EPS and has raised its target price to Rs 1,590 apiece from Rs 1,508 apiece, implying an upside of 34%. The brokerage has maintained its 'buy' rating on the stock.
Nomura expects an immediate improvement in margin in FY25, followed by steady revenue growth in subsequent years. It has maintained its 'buy' rating on the stock, but lowered the price target to Rs 1,350 apiece from Rs 1,460 apiece, implying an upside of 13.4%.
Analyst Recommendations
Out of the total recommendations on Bloomberg, 35% have a 'buy' recommendation and 37% have 'sell' on the stock, with the rest suggesting a 'hold'. This implies that there is no strong consensus call on the stock, with analysts having mixed views. The 12-month consensus price target of analysts implies a downside of 3.4%.
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