The shares of prominent technology consulting service providers plummeted up to 2 percent after Macquarie, a well-known brokerage globally, added the company to its sell list.
Price Movement
With a market capitalization of Rs 1.61 lakh crore, the shares of Tech Mahindra Ltd were trading at Rs 1,652.55 per share, decreasing around 1.22 percent as compared to the previous closing price of Rs 1,672.90 apiece.
Macquarie, one of the well-known brokerages globally, gave a ‘sell’ rating on this IT stock with a target price of Rs 1,090 apiece, indicating a potential downside of 34 percent from Friday’s price of Rs 1,652.55 per share.
Macquarie remains cautious on Tech Mahindra’s FY27 targets, citing challenges in achieving a 15 percent EBIT margin and surpassing peers in revenue growth. It projects FY26 EPS growth to stay in single digits, potentially capping the stock’s valuation upside. The modest outlook may hinder a significant re-rating, keeping investor sentiment restrained in the near term
Looking forward to the company’s financial performance, revenue increased by 4 percent from Rs 12,871 crore in Q4FY24 to Rs 13,384 crore in Q4FY25. Further, during the same time frame, net profit increased by 72 percent from Rs 664 crore to Rs 1,142 crore.
Tech Mahindra’s FY25 vertical revenue mix: Communications leads at 33.1 percent (–5.0 percent YoY), Manufacturing 17.3 percent (–1.6 percent), Banking, Financial Services & Insurance 16.1 percent (+4.3 percent), Technology, Media & Entertainment 13.9 percent (–0.4 percent), Retail, Transport & Logistics 7.9 percent (+4.4 percent), Healthcare & Lifesciences 7.5 percent (+3.7 percent), Others 4.3 percent (+16.0 percent). These segments represent Tech Mahindra’s diverse industry exposure.
Tech Mahindra launched its ‘TechM Consulting’ service line and inaugurated a Manufacturing Xperience Centre in Chennai. It partnered with NVIDIA to develop AI-driven pharmacovigilance via its TENO framework, expanded its Google Cloud alliance, collaborated with Qualcomm through IndusQ LLM, and joined the AI-RAN Alliance to advance AI solutions in telecom.
Written by Abhishek Singh
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