Best Stocks to Buy Today : IIFL Securities's call on Tech Mahindra - May 16

IIFL Securities recommends buying Tech Mahindra shares with a target price of Rs 1350, indicating a potential upside of 3.4% from the current market price of Rs 1305.55. The stock has been performing well recently, and the analysts believe that the positive momentum is likely to continue in the near term. They cite the company's strong order book and expanding margins as key reasons for their optimism.

About Tech Mahindra:

Tech Mahindra is a global provider of information technology (IT) and business process outsourcing (BPO) services, headquartered in Mumbai, India. The company offers a wide range of IT services, including application development, infrastructure management, cloud computing, cybersecurity, and analytics. Tech Mahindra also provides BPO services, such as customer relationship management, human resources management, and financial accounting. The company has a presence in over 90 countries and employs over 125,000 people. Tech Mahindra is listed on the National Stock Exchange of India (NSE) and has a market capitalization of over $5 billion.

52 Week Price Trend:

Tech Mahindra's current market price (CMP) of Rs 1305.55 falls within its 52-week trading range of Rs 981.05 (low) and Rs 1416.3 (high). This indicates that the stock is currently trading closer to its recent low than its high, suggesting a potential opportunity for investors looking to accumulate shares at a relatively lower price. However, it is important to note that past performance is not necessarily indicative of future results, and investors should conduct their own research and due diligence before making any investment decisions.

Stratzy's MOST Analysis:

TECHM has been rated BB by Stratzy's MOST framework. This indicates that the company has Medium Fundamental Risks. The rating is based on four pillars: Management, Outlook, Safety, and Trend. Stratzy evaluates each of these pillars and assigns a score based on the company's performance. The overall score is then used to determine the final rating. A rating of BB indicates that TECHM has some strengths and weaknesses, but overall, the company is in a stable financial position.

Company's Fundamentals:

Tech Mahindra (NSE: TECHM), an IT services and consulting company, has a stock PE ratio of 45.05, indicating that its stock price is relatively high compared to its earnings. The PB ratio of 4.8 suggests that the company's market value is 4.8 times its book value, implying that investors are willing to pay a premium for its assets. Despite the higher valuations, TECHM offers a dividend yield of 2.46%, which provides investors with a steady stream of income.

Fundamental and Technical information provided in this blog were last updated on 16 May, 2024

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