Tech Mahindra Q3 Results Review — Dolat Capital Maintains 'Sell' On The Stock; Here's Why

Tech Mahindra added 12 new logos in Q3, with two dozen+ accounts crossing $1 million plus annual revenue run rate (in the must-have category)..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Tech Mahindra Ltd.’s Q3 FY25 revenue stood at $1,567 million, reflecting 1.2% QoQ growth in cc terms (our estimate: 0.3%). The growth was led by banking, financial services and insurance (+2.7% QoQ) and Healthcare (+4.5% QoQ), while tech and telecom saw modest performance (-0.9%/+0.4% QoQ in CC terms). Operating profit margin stood at 10.2%, an increase of 54 bps QoQ (our estimate: 9.7%). Management remains cautious on discretionary tech spending but is optimistic about sustained large deal wins (+24% QoQ to $745 million). However, the ongoing macro uncertainties in telecom and auto remain a drag, raising concerns about the company meeting the FY27 target of 15% Ebit margins.We revise our FY25/FY26/FY27E EPS estimate by -1.6%/-2.7%/-2% due to the uncertain macro environment and ambitious growth targets set by the company. As the risks associated to the estimates are high, we maintain ‘Sell’ rating with target price of Rs 1,570 at 23 times (FY27E earnings of 68.3)..Click on the attachment to read the full report:.Tech Mahindra Q3 Results: Profit Falls 21%, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tech Mahindra Q3 Results Review — Dolat Capital Maintains 'Sell' On The Stock; Here's Why

As the risks associated to the estimates are high, Dolat Capital maintains ‘Sell’ rating with target price of Rs 1,570 at 23 times (FY27E earnings of 68.3).

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Tech Mahindra Q3 Results Review — Dolat Capital Maintains 'Sell' On The Stock; Here's Why

As the risks associated to the estimates are high, Dolat Capital maintains ‘Sell’ rating with target price of Rs 1,570 at 23 times (FY27E earnings of 68.3).

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