CTC acquisition adds a feather to Tech Mahindra’s cap

Stocks

The organic prospects coupled with earnings accretive acquisition in growth areas should keep the earnings trajectory strong amid an unprecedentedly strong demand environment and make a case for long-term investment in Tech Mahindra

CTC acquisition adds a feather to Tech Mahindra’s cap

PRO Only Highlights
– 
Quarterly performance largely backed by improved realisations
– 
Medium-term triggers China plus and protectionist measures for tyre industry
– 
Valuations not inexpensive; but improved medium-term outlook

Tech Mahindra (TechM, CMP: Rs 1722 M Cap: Rs1,67,191 crore ) has bolstered its financial services vertical as well as it digital prowess with the acquisition of a 100 percent stake in CTC, which  specialises in digital engineering and outsourced product development. This company offers high-end digital engineering services to some of the largest insurance and reinsurance organisations globally. Tech M has also picked up a 25 percent stake each in SWFT Technologies (Swift) and Surance that are early…