Tech Mahindra Q4 Review - New CEO Lays Ambitious Plans To Achieve Higher Growth, 15% OPM: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Tech Mahindra Ltd.’s constant currency revenue declined by 0.8% in CC versus (our estimate: -1% CC) as enterprise/comms segment remained muted and declined 1%/2.8% QoQ. Operating profit margin stood at 7.4%, (our estimate: 7%), up 200 bps QoQ due to absence of rationalization impact.Management laid very ambitious plan to achieve growth rate higher to peerset (implies 7%+) and Ebit margins of 15%. While we appreciate the deepdive on its three-year roadmap, we would have rather preferred their near-term outlook given uncertainty in the environment and daunting task at hand.We tweak our FY25/FY26E earnings per share estimate (-5%/-7%) given weak deal wins and slowing revenue conversion. FY27E guidance is expected to be a tall task, yet overstretched. Maintain ‘Sell’ rating with target price of Rs 1,190 valuing at 20 times FY26E..Click on the attachment to read the full report:.Tech Mahindra Q4 Results Review - Turnaround In Progress: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tech Mahindra Q4 Review - New CEO Lays Ambitious Plans To Achieve Higher Growth, 15% OPM: Dolat Capital

Tech Mahindra revealed its FY27 goals and elaborated three key strategies

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