Tech Mahindra’s stock price saw a significant rise of 3.23%, reaching ₹1,742.35 as of 9:16 AM today. The surge comes on the back of strong Q2 FY24-25 earnings, where the company posted a 153% year-on-year (YoY) jump in consolidated net profit, which stood at ₹1,250 crore.
Key Factors Driving the Stock Price:
- Stellar Q2 Results: Tech Mahindra’s net profit surged by 153% YoY to ₹1,250 crore, alongside a 3.5% YoY revenue increase. This strong financial performance has provided a boost to investor sentiment.
- Dividend Declared: The company declared a dividend, signaling its continued commitment to rewarding shareholders, further increasing positive market sentiment.
- Positive Brokerage Views: Several brokerage firms have responded positively to Tech Mahindra’s Q2 performance:
- Nomura: Praised the company’s progress and its turnaround strategy, stating the results beat most parameters.
- Jefferies: Highlighted that while order bookings were down, Q2 revenue beat estimates, driven by growth in the communications vertical.
- Goldman Sachs: Commented on Tech Mahindra’s PPOP growth and strategic moves, which are fueling profitability and margin improvement.
Market Reaction:
Following the announcement, Tech Mahindra’s stock rose by ₹54.45 (+3.23%), reaching ₹1,742.35. The robust Q2 results and positive brokerage outlooks have been key drivers behind this stock movement, reflecting growing investor confidence in the company’s recovery and future prospects.
Tech Mahindra’s impressive Q2 results, which include a 153% jump in net profit, revenue growth, and the declaration of a dividend, have led to a 3.23% surge in its stock price. With favorable broker views and continued strength in key business verticals, the company is poised for continued success in the IT sector.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
