
Morgan Stanley (MS) has maintained its ‘equal-weight’ rating on Tech Mahindra, increasing the target price to ₹1,750 from ₹1,725. The brokerage believes that the worst is likely behind for key verticals, as revenue stabilisation is observed.
The company has shown steady improvement in new deal wins, which could support its growth trajectory. MS also expects margins to remain stable in Q4, despite the impact of a wage hike. However, the upside risks to margins appear low at the moment.
MS opines that the stock is fairly valued at current levels. At the current market price (CMP) of ₹1,657.65, the target price indicates a potential upside of 5.6%.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult with their financial advisor before making any investment decisions.