Stock Fundamentals

Tech Mahindra: Ahead of expectations

K.Venkatasubramanian | Updated on May 26, 2018 Published on May 26, 2018

The stock of Tech Mahindra has risen nearly 16 per cent in the last month and a half.

The company recorded a 2.9 per cent increase in revenues sequentially and 27.9 per cent rise in net profits in dollar terms during the March quarter. The results were ahead of market expectations.



Tech Mahindra added four customers in the $20-million category and two clients in the $10-bucket during the March period. The dependence on the telecom vertical continues to come down; other key segments such as manufacturing and BFSI have grown at a healthy clip. The proportion of onsite revenues, at 67 per cent, continues to rise, suggesting improving client traction, though costs may rise with increased onsite hiring.

But at nearly 17 times its trailing 12 months earnings, the stock is not cheap vis-à-vis other large-cap peers.

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.

  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.

  • Ad free experience

    Experience cleaner site with zero ads and faster load times.

  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor