Tech Mahindra shares jump 4% after Q2 PAT jumps 153%. Here’s what brokerages say
Tech Mahindra today surged 4% in an intraday session to their new 52-week high of Rs 1,761.30 after the company on Saturday reported a 153.1% year-on-year (YoY) to Rs 1,250 crore for the second quarter, while its revenue rose by 3.5% YoY to Rs 13,313 crore in the said quarter.
On a sequential basis, profit and revenue saw growth of 46.81% and 2.36%, respectively.
While announcing the quarterly numbers, the Mahindra Group company also declared an interim dividend of Rs 15 per equity share and fixed November 1 as the record date for determining eligibility of shareholders.
Here is what analysts say:
HDFC Securities: Reduce| Target price: Rs 1,480
Tech Mahindra’s (TECHM) growth and margin trajectory improved yet remain a work in progress. Q2 growth and margin print were slightly ahead of estimates, supported by strong growth in 75% of the portfolio (ex-Manufacturing/Healthcare). The recovery gradient is on the expected lines, yet the task remains steep. The margin improvement was led by strong IT segmental margin improvement, offsetting the drop in BPO margin (BPO 16% of revenue and ~12% of operating profit), a drop in other expenses and flat sub-con expenses.
Stock Trading
A2Z of Stock Trading — Online Stock Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Dow Theory Made Easy
By — Vishal Mehta, Independent Systematic Trader
Stock Trading
Technical Analysis for Everyone — Technical Analysis Course
By — Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities
Stock Trading
