Tech Mahindra’s stock price rose over 6 per cent in early trade on BSE on Thursday, January 25, a day after the company announced its December quarter scorecard. Tech Mahindra stock price is INRPrevious closing price ratio 1,349.65 INR1,407.75, immediately down more than 6%. INR1,322. As of 9:20 a.m., the stock was trading down 5.53%. INR1,329.95.
Tech Mahindra’s Q3 results: During after-market hours on Wednesday, Tech Mahindra reported a significant drop in net profit of 61% year-on-year (YoY). INR$510.4 million in the December 2023 quarter. INRThe same period last year was $1,296.6 million.
The company’s operating revenue decreased 4% year over year. INR1,373.46 billion in Q3 FY23 INR13,101,300,000 yen during the period.
Tech Mahindra’s earnings before interest, tax, depreciation and amortization (EBITDA) plunged 46.5% year-on-year; INR114.6 billion.
Also read: Tech Mahindra Q3 results: Net profit down 61% YoY INR510.4 million, revenue INR13.11 billion
what should you do?
Following the IT company’s third-quarter numbers, most brokerages maintained their traditional view on the stock. They don’t seem optimistic about the stock in the short term.
Nuvama Wealth Management Maintain a “down” call on the stock price and set a target price INRFrom 1,020 INRBefore 1,050.
“Tech Mahindra’s weak order intake dwarfs the possibility of bottoming out in revenue declines and rising margins in the near future.Investors are looking forward to the new CEO’s future strategy to be announced in April 2024. The Company plans to reduce 2024 EPS, 2025 EPS, and 2026 EPS (lower growth and margins will reduce earnings per share by 8.5%, 6.9%, and 1.4%, respectively). said Nubama.
“While we remain optimistic about our new CEO, we believe he has a difficult task ahead of him in restoring Tech Mahindra’s performance with growth and profitability. Any strategy he implements will be reflected in the bottom line. “This will likely take some time, and the stock is likely to underperform its peers during that period,” the brokerage said.
Motilal Oswal Financial Services We maintain a neutral view on the stock price, and the target price is INR1,360.
The brokerage said Tech Mahindra’s third quarter results were weak but beat expectations.
Motilal Oswal said, “Tech Mahindra has strong exposure to the telecom industry, offering potential opportunities. Widespread rollout of 5G is likely to create a new spending cycle in this sector.” said.
“Near-term growth remains weak, so we are waiting for further comfort on margins. We value the company’s stock at 20 times FY26 EPS. We maintain a neutral rating on the stock,” the brokerage said. “There is,” he said.
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Disclaimer: The views and recommendations expressed above are those of individual analysts, experts, and brokerages and are not the views of Mint. We recommend checking with a certified professional before making any investment decisions.
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