Buy Tech Mahindra, target price Rs 1290: Kotak Securities
Kotak Securities has issued a buy call for Tech Mahindra on June 06, recommending a purchase at the current market price of Rs 1264.75. The brokerage firm has set a target price of Rs 1290 for the stock, indicating a potential upside of 2%. This recommendation is based on the company's strong fundamentals, including its robust order book, focus on digital transformation, and cost optimization initiatives.
About Tech Mahindra:
Tech Mahindra is a leading provider of digital transformation, consulting, and business re-engineering services and solutions. Headquartered in Mumbai, India, the company operates globally and has over 158,000 employees. Tech Mahindra offers a wide range of services, including cloud computing, data analytics, artificial intelligence, cybersecurity, and blockchain. The company serves a diverse customer base across various industries, including telecommunications, manufacturing, financial services, and healthcare. Tech Mahindra is a subsidiary of Mahindra & Mahindra, one of the largest automotive companies in India.
52 Week Price Trend:
Tech Mahindra's current market price (CMP) of Rs 1264.75 places it significantly below its 52-week high of Rs 1416.3. Despite this gap, the stock has made a notable recovery from its 52-week low of Rs 981.05, suggesting potential for further growth. The stock's performance may be influenced by factors such as the company's financial results, industry trends, and overall market conditions. Investors should carefully consider these factors and conduct thorough research before making any investment decisions.
Stratzy's MOST Analysis:
Based on Stratzy's MOST framework, TECHM has received a BB rating, indicating a medium level of fundamental risk. This rating is determined by evaluating the company's Management, Outlook, Safety, and Trend factors. A BB rating suggests that TECHM's management team is effective, the company has a positive growth outlook, its financial position is stable, and the industry trend is favorable. However, investors should be aware that there may be some potential risks associated with investing in TECHM, and should conduct further research before making any investment decisions.
Company's Fundamentals:
Tech Mahindra (NSE: TECHM) is a leading global technology services provider, listed on the National Stock Exchange of India (NSE). Its current stock price of around INR 1,270 implies a Price to Earnings (PE) ratio of 45.05, indicating investors are willing to pay 45 times the company's annual earnings per share. The Price to Book (PB) ratio of 4.8 means the market value of Tech Mahindra's assets is 4.8 times the company's total equity. Finally, the Dividend Yield of 2.46% signifies that investors can earn an annual return of 2.46% on their investment through dividends. These financial metrics provide insights into Tech Mahindra's stock valuation, profitability, and dividend payout policy, helping investors make informed investment decisions.
Fundamental and Technical information provided in this blog were last updated on 06 Jun, 2024
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