Tech Mahindra soars 4.5% on Q3 dollar sales growth

Tech Mahindra shares jumped as much as 4.5 per cent on Wednesday after the outsourcer's December-quarter profit rose more than three-fold to beat analysts' estimates.

Tech Mahindra reported 4.4 per cent sequential rise in dollar revenues outperforming bigger rivals Tata Consultancy services and HCL Technologies. The strong growth came on the back of a 11.5 per cent sequential rise in sales in the key market of North America. (Read the earnings copy)

Bank of America Merrill Lynch retained its buy call on Tech Mahindra saying investors should use the current weakness in markets to buy the stock. Goldman Sachs also maintained its buy call on Tech Mahindra citing strong growth at attractive valuations. The investment bank has a target of Rs 2,200 on the stock.

Tech Mahindra shares traded at Rs 1,847 as of 09.50 a.m. near the day's high of Rs 1,849 on the BSE. The stock outperformed the broader BSE IT benchmark, which traded 0.5 per cent higher. (Track stock)

(With inputs from Reuters)