The strong outlook and an undemanding valuation make Tech Mahindra an attractive large-cap bet to ride on the strong technology up-cycle
Technology | Representative image
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
– 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
The stock of Tech Mahindra (Tech M; CMP: Rs 1,506; Market Cap: Rs 146,203 crore) has underperformed both the benchmark Nifty and the BSE IT index in the past fortnight. The December-quarter earnings, while directionally positive, was a tad softer, thanks largely to seasonality. With the company seriously addressing the talent crunch and experiencing robust order flows, we have little doubt about a strong FY23 from the earnings perspective. Seen in this context, the stock’s large discount to some of its…
