Tech Mahindra stock’s unprecedent hit leads to bullish market trend

Shares of Tech Mahindra Ltd leapt over all the maintained indices to create an all-time high mark. Analysts have maintained a bullish stance on the software service exporters due to a growth in revenue from 5G capital opportunities.

With a bumper opening, Tech Mahindra aims to achieve approximately 15 percent EBIT (Earning Before Interest and Tax) margins in FY22. The company will be riding on robust revenue growth, improved performance of acquired entities, and automation-led operating efficiencies.


The company said, “At its core, the strategy continues to be centred around three megatrends, four technology bets, and three objectives (the 3-4-3 strategy introduced in 2017). BFSI, retail, healthcare, and hi-tech offers a significant growth opportunity and could expand to $1 billion-plus vertical over the next couple of years. These four verticals, along with manufacturing and, CME would be the key growth drivers.”

According to the company, the benefits may derive from a negated salary hike and normalization of travel and other costs.

Dipeshkumar Mehta, an analyst at Emkay said, “The timeline of an uptick in 5G spending by telecom companies is uncertain. However, valuations are reasonable, and underlying business spending drives for 5G are sound.”

Shares of the company rose by a tentative 3.8 percent to Rs 910 apiece before shutting to a 0.4 percent high.