Tech Mahindra share price skyrockets 10% after Q4 results. Should you buy on the rise? Here's what experts say

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₹1309 per share. This significant uptick occurred despite the company reporting lackluster financial results. The company released its financial results for Q4 FY24 and the full fiscal year FY24 post-market hours on Thursday, falling short of street estimates.

In Q4 FY24, its consolidated net profit plummeted nearly 41% to ₹661 crore, while revenue declined by 6.2% year-on-year to ₹12,871 crore. For the full FY24, the consolidated net profit saw a sharp decline of 51.2% year-on-year to ₹2,358 crore, with revenue standing at ₹51,996 crore, marking a 2.4% decrease over the previous fiscal year. Despite the significant profit decline, the company outlined ambitious objectives for the next three years.

Management revealed its vision for FY27, aiming to surpass peers in revenue growth, achieve a 15% EBIT margin by FY27, maintain a 30%+ ROCE profile, and return >85% of FCF by FY27. Key focuses include scaling large accounts, winning multi-tower deals, leveraging synergies from past acquisitions, enhancing the cost structure, and achieving profitable and consistent growth. The aspiration is to rank among the top 3 IT services companies in terms of margins post-FY27.

Motilal Oswal, a domestic brokerage firm, expressed optimism about the restructuring at TECHM under new leadership, viewing recent initiatives positively, such as SBU right-sizing, investments in top accounts, the establishment of vertical delivery teams, and employee investments. However, the brokerage remains cautious, awaiting tangible improvements from the restructuring and revamped strategy before considering a re-rating. Despite the management's target of achieving a 15% EBIT margin by FY27, the absence of growth and near-term investments may hinder