Tech Mahindra

₹1698.9 -7.5 | 0.4%

WEBSITE BSE:532755 NSE : TECH MAH 26 Dec, 16:01

Market Cap ₹166281 Cr.

Stock P/E 69.4

P/B 6.3

Current Price ₹1698.9

Book Value ₹ 270.7

Face Value 5

52W High ₹1807.4

Dividend Yield 2.35%

52W Low ₹ 1163.7

Edit Ratio

Tech Mahindra Research see more...

Research Report : Tech Mahindra

Overview Inc. Year: 1986Industry: IT - Software

Tech Mahindra Limited is an India-based provider of digital transformation, consulting and commercial enterprise re-engineering services and solutions. The Company operates thru two segments: Information Technology (IT) Services and Business Processing Outsourcing (BPO). Its geographical segments include America, Europe region, India and the Rest of the arena. The Company's merchandise/offerings include telecom services, consulting, application outsourcing, infrastructure outsourcing, engineering offerings, enterprise services organization, platform solutions and mobile price-introduced offerings. The Company serves industries, including communications, production, technology, media and leisure, banking, financial services and coverage, and retail, transport and logistics. Its subsidiaries comprises Tech Mahindra Luxembourg S.A r.L., Yabx India Private Limited, Tech Mahindra Credit Solutions Inc, Tech Mahindra Technology Services LLC, Zen3 Infosolutions (America) Inc. And Oslo Solutions LLC.

Tech Mahindra Share Price

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Peer Comparison

Tech Mahindra Quarterly Results

#(Fig in Cr.)	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Net Sales	12708	13130	13735	13718	13159	12864	13101	12871	13006	13313
Other Income	122	290	247	306	192	264	88	374	145	522
Total Income	12830	13420	13982	14024	13351	13128	13189	13245	13150	13835
Total Expenditure	10828	11170	11591	11910	11821	11941	11955	11772	11441	11563
Operating Profit	2002	2250	2391	2114	1530	1187	1234	1473	1709	2272
Interest	40	79	113	93	120	98	117	59	72	89
Depreciation	477	492	498	490	447	466	443	461	462	470
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	1485	1679	1780	1530	963	624	674	953	1176	1713
Provision for Tax	338	365	486	400	268	110	155	295	313	456
Profit After Tax	1147	1315	1294	1130	696	514	519	658	862	1257
Adjustments	-16	-29	2	-12	-3	-20	-9	3	-11	-7
Profit After Adjustments	1132	1285	1297	1118	693	494	510	661	852	1250
Adjusted Earnings Per Share	12.9	14.6	14.7	12.7	7.9	5.6	5.8	7.5	9.6	14.1

Tech Mahindra Profit & Loss

#(Fig in Cr.)	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Net Sales	18831	22621	26494	29141	30773	34742	36868	37855	44646	53290	51996	52291
Other Income	509	483	579	939	1444	534	1192	787	1142	965	959	1129
Total Income	19340	23105	27073	30079	32217	35276	38060	38642	45788	54255	52955	53419
Total Expenditure	15043	18814	22363	25117	26090	28405	31359	31059	36656	45498	47531	46731
Operating Profit	4297	4291	4710	4962	6126	6871	6701	7583	9132	8757	5423	6688
Interest	80	69	97	129	162	133	192	174	163	326	392	337
Depreciation	522	604	759	978	1085	1129	1446	1458	1520	1957	1817	1836
Exceptional Income / Expenses	120	0	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	3815	3618	3857	3853	4879	5543	5058	5953	7452	6446	3224	4516
Provision for Tax	752	960	830	1002	1093	1254	1160	1600	1822	1589	828	1219
Profit After Tax	3062	2659	3027	2851	3786	4289	3897	4353	5630	4857	2397	3296
Adjustments	-34	-31	-34	-38	14	9	136	75	-64	-26	-39	-24
Profit After Adjustments	3029	2628	2993	2813	3800	4298	4033	4428	5566	4831	2358	3273
Adjusted Earnings Per Share	32.4	27.3	34.4	32.1	43	48.4	46.3	50.7	63.4	54.9	26.7	37

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	-2%	11%	8%	11%
Operating Profit CAGR	-38%	-11%	-5%	2%
PAT CAGR	-51%	-18%	-11%	-2%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	33%	-2%	17%	10%
ROE Average	9%	16%	17%	22%
ROCE Average	12%	20%	21%	26%

Tech Mahindra Balance Sheet

#(Fig in Cr.)	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Shareholder's Funds	9182	12249	15821	17668	20073	21515	23044	26095	28116	29155	27900
Minority's Interest	144	160	193	464	509	478	393	380	495	470	477
Borrowings	19	46	197	385	771	209	179	166	142	129	103
Other Non-Current Liabilities	407	64	146	889	591	306	1968	1847	2793	1782	888
Total Current Liabilities	5805	6939	5636	6393	7917	10331	10926	10278	12505	13321	12617
Total Liabilities	15557	19458	21993	25799	29861	32838	36509	38765	44052	44857	41984
Fixed Assets	2594	4033	4309	6359	7432	6890	8728	8929	14704	14857	13832
Other Non-Current Assets	2420	3173	2697	3114	4322	4382	4609	4575	4892	5567	4727
Total Current Assets	10542	12253	14986	16300	18107	21566	23172	25260	24456	24433	23425
Total Assets	15557	19458	21993	25799	29861	32838	36509	38765	44052	44857	41984

Tech Mahindra Cash Flow

#(Fig in Cr.)	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Opening Cash & Cash Equivalents	537	1452	1206	2394	2001	1966	2043	3017	2690	3789	4056
Cash Flow from Operating Activities	1596	2448	3137	4071	3554	4432	4358	8094	5285	5572	6376
Cash Flow from Investing Activities	-190	-2092	-1460	-2890	-3360	-2116	1029	-5450	482	-279	-1314
Cash Flow from Financing Activities	-972	-829	-496	-1571	-269	-2251	-4466	-2987	-4667	-5078	-4767
Net Cash Inflow / Outflow	434	-473	1181	-389	-76	64	921	-343	1100	215	296
Closing Cash & Cash Equivalent	1452	1206	2394	2001	1966	2043	3017	2690	3789	4056	4347

Tech Mahindra Ratios

#	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Earnings Per Share (Rs)	32.43	27.35	34.36	32.05	43.01	48.43	46.26	50.66	63.42	54.9	26.71
CEPS(Rs)	38.38	33.96	43.46	43.63	55.14	61.05	61.29	66.48	81.48	77.43	47.74
DPS(Rs)	10	6	12	9	14	14	15	45	45	50	40
Book NAV/Share(Rs)	95.95	123.2	161.16	181.06	208.6	223.98	245.32	279.11	301.7	312.96	298.72
Core EBITDA Margin(%)	20.12	16.83	15.59	13.81	15.22	18.24	14.94	17.95	17.9	14.62	8.59
EBIT Margin(%)	20.68	16.3	14.92	13.66	16.38	16.34	14.24	16.19	17.06	12.71	6.96
Pre Tax Margin(%)	20.26	15.99	14.56	13.22	15.85	15.96	13.72	15.73	16.69	12.1	6.2
PAT Margin (%)	16.26	11.75	11.42	9.78	12.3	12.34	10.57	11.5	12.61	9.11	4.61
Cash Profit Margin (%)	19.04	14.42	14.29	13.14	15.83	15.59	14.49	15.35	16.02	12.79	8.1
ROA(%)	25.11	15.19	14.6	11.93	13.6	13.68	11.24	11.57	13.6	10.93	5.52
ROE(%)	42.85	25.57	23.39	19.05	22.07	22.39	18.89	19.02	22.13	17.98	8.89
ROCE(%)	47.64	32.78	26.48	22.15	24.29	24.69	21.42	22.99	26.49	22.41	12.02
Receivable days	58.65	77.08	75.61	69.57	70.19	70.69	71.95	80.07	85.7	84.98	85.23
Inventory Days	0.2	0.28	0.45	0.64	0.75	0.74	0.55	0.29	0.26	0.22	0.21
Payable days	0	0	0	0	0	0	0	0	0	0	0
PER(x)	13.83	23.02	13.84	14.34	14.84	16.03	12.21	19.57	23.64	20.07	46.81
Price/Book(x)	4.68	5.11	2.95	2.54	3.06	3.47	2.3	3.55	4.97	3.52	4.19
Dividend Yield(%)	1.11	0.95	2.52	1.96	2.19	1.8	2.66	4.54	3	4.54	3.2
EV/Net Sales(x)	2.07	2.6	1.45	1.32	1.81	1.97	1.32	2.26	2.89	1.77	2.06
EV/Core EBITDA(x)	9.07	13.7	8.17	7.76	9.1	9.97	7.25	11.27	14.15	10.77	19.76
Net Sales Growth(%)	173.99	20.13	17.12	9.99	5.6	12.9	6.12	2.68	17.94	19.36	-2.43
EBIT Growth(%)	238.81	-5.33	7.23	0.71	26.61	12.6	-7.52	16.59	24.28	-11.08	-46.59
PAT Growth(%)	277.61	-13.19	13.84	-5.81	32.81	13.28	-9.13	11.53	29.34	-13.73	-50.65
EPS Growth(%)	29.03	-15.66	25.64	-6.72	34.2	12.59	-4.48	9.52	25.19	-13.44	-51.34
Debt/Equity(x)	0.04	0.06	0.08	0.09	0.13	0.1	0.12	0.07	0.06	0.06	0.06
Current Ratio(x)	1.82	1.77	2.66	2.55	2.29	2.09	2.12	2.46	1.96	1.83	1.86
Quick Ratio(x)	1.81	1.76	2.65	2.54	2.28	2.08	2.12	2.46	1.95	1.83	1.85
Interest Cover(x)	48.74	53.36	40.76	30.96	31.04	42.62	27.36	35.21	46.83	20.8	9.22
Total Debt/Mcap(x)	0.01	0.01	0.02	0.03	0.04	0.03	0.05	0.02	0.01	0.01	0.01

Tech Mahindra Shareholding Pattern

#	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoter	35.24	35.22	35.19	35.18	35.16	35.13	35.11	35.09	35.05	35.03
FII	30.43	28.2	27.95	26.87	25.68	26.22	24.58	24.15	23.28	23.66
DII	20.91	23.78	23.91	25.85	27.03	27.2	29.09	29.59	30.83	31.07
Public	13.43	12.8	12.95	12.1	12.13	11.44	11.23	11.17	10.85	10.24
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoter	34.27	34.27	34.27	34.27	34.27	34.27	34.27	34.27	34.27	34.27
FII	29.59	27.45	27.22	26.18	25.03	25.58	23.99	23.59	22.76	23.15
DII	20.33	23.14	23.28	25.18	26.34	26.54	28.4	28.91	30.14	30.4
Public	13.06	12.46	12.61	11.79	11.82	11.16	10.96	10.91	10.61	10.02
Others	0	0	0	0	0	0	0	0	0	0
Total	97.26	97.32	97.38	97.41	97.47	97.55	97.62	97.68	97.79	97.83

Pros

Company has reduced debt.
Company is almost debt free.

Cons

Promoter holding is low: 35.03%.
Stock is trading at 6.3 times its book value.
The company has delivered a poor profit growth of -10% over past five years.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.