Nomura has reiterated its ‘buy’ rating on Tech Mahindra, with a target price of ₹1,900. At the current market price (CMP) of ₹1,657.65, the target indicates an upside potential of 14.6%.
Key Insights:
- Q3FY25 Performance: Tech Mahindra delivered results that beat expectations across all parameters.
- EPS Revisions: Nomura has revised FY25-27 EPS estimates marginally by 0-2%.
- Revenue and Margins: Expected dollar revenue growth stands at 0.9-9.2% YoY, with EBIT margins projected in the range of 9.3-13.2% over FY25-27.
- Discretionary Demand: Further deterioration in discretionary demand is deemed unlikely, providing stability to growth projections.
Strategic Outlook:
Nomura highlights Tech Mahindra’s steady progress toward its medium-term goals, underpinned by its strong Q3FY25 performance and stable growth outlook. With revisions reflecting marginal EPS growth and a solid revenue trajectory, Nomura sees Tech Mahindra as well-positioned for sustained success.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult their financial advisor before making any investment decisions.
