CLSA has upgraded Tech Mahindra to ‘Outperform’ from its previous ‘Hold’ rating and increased the target price to ₹1,749. The brokerage firm highlighted that EBIT margin expansion is already underway, with the order book being the next key milestone. However, broad-based growth for Tech Mahindra is not expected before FY26, with financial services, healthcare, and manufacturing sectors driving the majority of this growth.
CLSA also stated that the EBIT margin target of 15% by FY27 is achievable and not overly ambitious. The recent improvement in EBIT margin trends has provided room for further stock rerating.
Stock details: As of 9:20 AM, Tech Mahindra’s stock was trading at ₹1,616.25, up by ₹39.05 (+2.48%), after opening at ₹1,580.00. The stock has touched a high of ₹1,625.80 and a low of ₹1,580.00 during the session.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult with a financial expert before making any investment decisions.
