One of the top providers of business reengineering, consulting, and digital transformation services to clients across numerous industries is Tech Mahindra Ltd. The business, which has operations in more than 90 countries, is based in Pune, India. Tech Mahindra offers a wide range of services, including consulting, engineering, enterprise solutions, digital transformation, and cybersecurity. The business has consistently been on the cutting edge of innovation and has won numerous awards for its contributions to the sector. This essay will examine the background, offerings, and effects of Tech Mahindra on the IT sector.
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TECH MAHINDRA IN RECENT NEWS
- Tech Mahindra shares have reached the Rs 1,100 level, but brokerages are cautioning investors, suggesting a potential downside of up to 21%.
- In FY24, Tech Mahindra’s CFO, Rohit Anand, has prioritized upgrading the skills of the talent pool to align with cutting-edge technology. He emphasized focusing on training efforts and implementing programs to enhance the successful redeployment of individuals with new technological capabilities.
- Following the Q1 results, Tech Mahindra’s share price experienced a decline of more than 5%.
HOW TO BUY TECH MAHINDRA SHARES?
Tech Mahindra shares can be bought through the following trading platforms:
TECH MAHINDRA SHARE PRICE TARGET 2023
|TECH MAHINDRA SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
Tech Mahindra’s share price prediction for 2023 suggests a bullish trend with a significant uptick in the stock’s performance. The company’s share prices are expected to experience a steady growth percentage throughout the year, with the highest projected price of ₹1,746.73 in December 2023, and the lowest projected price of ₹1,160.14 in August 2023. This indicates that there will be a 153.87% difference between the highest and the lowest predicted price of the stock in 2023. The projected maximum price for Tech Mahindra’s shares is ₹1,746.73 in December 2023, which is a 78.04% increase from the highest price in August 2023. Overall, the table suggests that Tech Mahindra’s shares are expected to perform well in 2023, with a positive growth trend throughout the year.
TECH MAHINDRA SHARE PRICE TARGET 2024
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The projected maximum price for the company’s shares is ₹2,725.51 in December 2024, which is a 164.18% increase from the highest price in January 2024. The projected minimum price is in ₹1,689.68 January 2024, indicating a 62.34% difference between the highest and the lowest predicted prices for the year. The data suggests that Tech Mahindra’s share prices are expected to steadily increase throughout 2024, with the highest projected price of ₹2,725.51 in December 2024 and the lowest projected price of ₹1,037.03 in January 2024. Overall, the table predicts a positive growth trend for Tech Mahindra’s shares in 2024, with an expected increase in the company’s stock value.
TECH MAHINDRA SHARE PRICE TARGET 2025
|TECH MAHINDRA SHARE PRICE TARGET 2025||Maximum Price||Minimum Price|
The projected maximum share price for the company’s shares is ₹3,306.08 in December 2025, which is a 150.42% increase from the highest price in January 2025. The projected minimum share price is ₹2,138.48 in January 2025, indicating a 30.14% difference between the highest and lowest predicted prices for the year. The data suggests that Tech Mahindra’s share prices are expected to continue on an upward trend throughout 2025, with the highest projected price of ₹3,306.08 in December 2025 and the lowest projected price of ₹2,138.48 in January 2025. This indicates that the company is expected to experience bullish sentiment in the coming years.
TECH MAHINDRA SHARE PRICE TARGET 2026 TO 2030
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Looking at the projected share prices for Tech Mahindra over the next five years, it appears that the company’s stock may experience some volatility. In 2026, the expected range for Tech Mahindra’s stock price is between ₹2,314.26 and ₹1,619.98. This could indicate a potential dip in the stock’s performance, but it’s important to note that projections can be subject to change. As for 2027, the projected range is between ₹1,967.12 and ₹1,376.98, which indicates a potential downward trend in the stock’s performance. However, projections for 2028 through 2030 show a significant bullish trend, with expected ranges of ₹3,540.82 to ₹2,478.57 for 2028, ₹7,273.39 to ₹5,091.37 for 2029, and ₹8,099.91 to ₹5,669.94 for 2030. These projections indicate that Tech Mahindra may experience substantial growth in the later years of the next decade.
FINANCIAL STRENGTH OF TECH MAHINDRA LTD (2019 TO 2023)
|Year||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Sales +(Rs crore)||34,742||36,868||37,855||44,646||53,290|
|Expenses +(Rs crore)||28,471||31,365||31,059||36,626||45,527|
|Operating Profit(Rs crore)||6,271||5,503||6,796||8,020||7,763|
|Other Income +(Rs crore)||534||1,192||788||1,115||965|
|Profit before tax(Rs crore)||5,543||5,058||5,953||7,452||6,446|
|Net Profit +(Rs crore)||4,289||3,897||4,353||5,630||4,857|
|EPS in Rs||43.70||41.76||45.73||57.27||49.60|
|Dividend Payout %||29%||32%||89%||47%||91%|
Tech Mahindra Ltd has shown consistent growth in sales, with revenue reaching Rs. 53,741 million in March 2023. However, there has been a fluctuation in the operating profit margin (OPM %), declining from 18% in March 2019 to 13% in March 2023.
On a positive note, Tech Mahindra’s earnings per share (EPS) have increased from Rs. 43.70 in March 2019 to Rs. 49.60 in March 2023, indicating a positive trend in generating earnings for shareholders. However, the return on equity (ROE) remained relatively low, averaging around 15% over the last five years, suggesting potential areas for improvement in utilizing shareholder capital.
In conclusion, Tech Mahindra’s financial performance reveals both strengths and areas that need attention. The company’s consistent revenue growth and positive EPS are positive indicators, but improving the operating profit margin and return on equity will be crucial to enhance shareholder value. As investors evaluate the stock’s potential, careful consideration of the company’s financial health and future growth prospects will be vital for making informed investment decisions.
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The maximum share price of Tech Mahindra in 2028 is Rs. 3540.82
The maximum share price of Tech Mahindra in 2029 is Rs. 7273.39
The maximum share price of Tech Mahindra in 2030 is Rs. 8099.91
TECH MAHINDRA SHARE PRICE TARGET BY EXPERTS:
- Sharekhan downgraded Tech Mahindra’s rating to “reduce” and set a target price of Rs 1050.(July 26, 2023)
- Emkay Global Financial has expressed a bullish outlook on Tech Mahindra and recommended a “buy” rating on the stock with a target price of Rs 1200.(July 27, 2023)
- KR Choksey has suggested an “accumulate” rating on Tech Mahindra shares with a target price of Rs 1207.(July 29, 2023)
- HDFC Securities advised a “reduce” rating on Tech Mahindra shares with a target price of Rs 1020.(July 26, 2023)
POINTS TO CONSIDER WHILE INVESTING IN TECH MAHINDRA LTD SHARES:
- The company has consistently maintained a strong dividend payout ratio of 75.7%, demonstrating its commitment to rewarding shareholders.
- However, its sales growth over the past five years has been lackluster, registering only 11.6%.
CONCLUSION: TECH MAHINDRA LTD
Based on Tech Mahindra’s financial statistics from the last five years, the firm has seen consistent development in both sales and profit, with a notable improvement in PAT in FY 2022. Also, the business has kept up strong operating and net profit margins, which shows effective spending management. It is crucial to remember that over the past five years, expenses have also been steadily rising.
In light of these elements, Tech Mahindra appears to be a good business for investors to take into account. The company’s capacity to produce sustainable returns for its investors is demonstrated by the increase in revenue, PAT, and profit that has been consistent over time, as well as by the excellent profit margins. When making an investment, however, investors need also take other aspects into account, such as industry developments, market competitiveness, and general economic conditions.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.