Tech Mahindra - New CEO Has Good Credentials; No Significant Change In Earnings Fundamentals: ICICI Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Mr. Mohit Joshi will take over after the existing Chief Executive Officer and Managing Director, Mr. CP Gurnani, retires on December 19, 2023. Mohit Joshi will join well before that date to allow sufficient transition time, as per Tech Mahindra Ltd. He may join in June 2023 given Infosys Ltd. has announced his resignation effective March 11, 2023 and that he will be on leave from this date and his last day would be June 9, 2023 at Infosys. We continue to maintain our rating on Tech Mahindra because we believe the company has room for improving its digital capabilities and in order to revive growth it will have to invest in building digital capabilities. Therefore, we assume modest U.S. dollar revenue compound annual growth rate of 8.3% and believe Ebit margins may remain range-bound, around 12-13%, over FY23E-FY26E (consensus: 13-14%) versus management’s aspiration of improving margins to 14-14.5% in the medium term. Additionally, Tech Mahindra’s wallet share in top-five clients has been reducing for the past four quarters and we believe this is likely to continue over the next two quarters as well due to increased level of automation and cost-reduction programmes undertaken by these clients. .Click on the attachment to read the full report:.Leadership Clarity Positive For Tech Mahindra; Awaiting Growth Turnaround: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Tech Mahindra - New CEO Has Good Credentials; No Significant Change In Earnings Fundamentals: ICICI Securities

Appointment of external CEO might lead to a churn at top management level which could cause subdued performance in the near term.

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Tech Mahindra - New CEO Has Good Credentials; No Significant Change In Earnings Fundamentals: ICICI Securities

Appointment of external CEO might lead to a churn at top management level which could cause subdued performance in the near term.

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