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 7.5

Current Price ₹1698.9

Book Value ₹ 227.5

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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Price: NSE50 DMA200 DMAVolume

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Peer Comparison

Tech Mahindra Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

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
Net Sales	16295	19163	20970	23165	23692	27228	29225	29641	35761	42657	42099
Other Income	507	476	1205	1085	1816	960	2366	922	1608	1128	1253
Total Income	16802	19639	22175	24250	25509	28188	31592	30563	37369	43786	43352
Total Expenditure	13171	16256	17703	19685	19881	22059	25525	24311	30131	37888	39726
Operating Profit	3632	3383	4471	4565	5627	6129	6066	6252	7238	5898	3626
Interest	87	48	53	64	71	43	67	63	69	181	246
Depreciation	427	466	542	622	656	659	667	662	740	813	815
Exceptional Income / Expenses	120	61	0	0	0	0	0	0	0	0	0
Profit Before Tax	3238	2931	3876	3879	4900	5427	5332	5527	6429	4904	2565
Provision for Tax	552	674	704	831	906	1047	798	1288	1406	1127	436
Profit After Tax	2686	2256	3173	3047	3994	4380	4535	4239	5023	3778	2129
Adjustments	0	0	0	0	0	0	0	0	0	0	0
Profit After Adjustments	2686	2256	3173	3047	3994	4380	4535	4239	5023	3778	2129
Adjusted Earnings Per Share	28.8	23.5	32.8	31.3	40.8	44.5	47	43.8	51.7	38.8	21.8

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	-1%	12%	9%	10%
Operating Profit CAGR	-39%	-17%	-10%	-0%
PAT CAGR	-44%	-21%	-13%	-2%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	33%	-2%	17%	10%
ROE Average	9%	15%	17%	22%
ROCE Average	11%	18%	20%	25%

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	8590	11256	16221	18121	20765	21878	23504	26246	27440	26434	24401
Minority's Interest	0	0	0	0	0	0	0	0	0	0	0
Borrowings	5	0	171	174	145	4	0	0	0	0	0
Other Non-Current Liabilities	384	41	89	718	581	395	668	762	1125	800	810
Total Current Liabilities	5450	5431	4028	4695	5064	7846	5714	5961	6720	8365	8838
Total Liabilities	14428	16729	20509	23708	26555	30124	29886	32969	35285	35599	34050
Fixed Assets	1834	1981	2123	2453	3102	2671	3236	2959	3550	3567	3153
Other Non-Current Assets	3514	5259	6032	8126	9082	9534	8607	9991	14199	14689	14115
Total Current Assets	9080	9489	12355	13102	14372	17919	18043	20020	17536	17344	16781
Total Assets	14428	16729	20509	23708	26555	30124	29886	32969	35285	35599	34050

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	270	1000	706	1708	972	891	960	1804	1068	1250	1094
Cash Flow from Operating Activities	1294	2108	2876	3332	3273	3634	2380	6852	3213	4102	5005
Cash Flow from Investing Activities	-22	-1702	-1082	-2586	-2185	-1542	3252	-5621	1555	677	47
Cash Flow from Financing Activities	-917	-770	-793	-1479	-1210	-2036	-4842	-2066	-4607	-4992	-4727
Net Cash Inflow / Outflow	354	-364	1002	-733	-121	56	790	-835	160	-213	325
Closing Cash & Cash Equivalent	1000	700	1708	972	889	960	1804	988	1250	1094	1415

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)	28.75	23.48	32.81	31.3	40.78	44.54	46.95	43.78	51.69	38.78	21.79
CEPS(Rs)	33.32	28.33	38.41	37.69	47.48	51.24	53.86	50.62	59.31	47.12	30.13
DPS(Rs)	10	6	12	9	14	14	15	45	45	50	40
Book NAV/Share(Rs)	89.61	112.87	149.29	167.89	195.33	205.94	226.35	253.65	265.55	254.79	234.1
Core EBITDA Margin(%)	19.17	15.17	15.58	15.02	16.09	18.98	12.66	17.98	15.75	11.18	5.64
EBIT Margin(%)	20.4	15.54	18.74	17.02	20.98	20.09	18.47	18.86	18.17	11.92	6.68
Pre Tax Margin(%)	19.87	15.29	18.49	16.74	20.68	19.93	18.25	18.65	17.98	11.5	6.09
PAT Margin (%)	16.48	11.77	15.13	13.15	16.86	16.09	15.52	14.3	14.05	8.86	5.06
Cash Profit Margin (%)	19.1	14.2	17.71	15.84	19.63	18.51	17.8	16.54	16.12	10.76	6.99
ROA(%)	24.87	14.48	17.04	13.78	15.89	15.45	15.11	13.49	14.72	10.66	6.11
ROE(%)	43.11	23.49	25.1	19.8	22.52	22.24	21.53	18.26	19.95	14.92	8.93
ROCE(%)	45.9	29.55	28.36	22.64	25.23	25.49	23.79	22.47	24.21	18.88	11.06
Receivable days	59.36	77.8	81.77	76.62	74.51	74.16	76.03	82.82	87.47	86.65	85.78
Inventory Days	0	0	0	0	0	0	0	0	0	0	0
Payable days	0	0	0	0	0	0	0	0	0	0	0
PER(x)	15.6	26.81	14.49	14.68	15.65	17.43	12.03	22.64	29.01	28.42	57.38
Price/Book(x)	5.01	5.58	3.18	2.74	3.27	3.77	2.5	3.91	5.65	4.32	5.34
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)	2.42	3.06	2.05	1.85	2.57	2.76	1.8	3.2	4.04	2.49	2.87
EV/Core EBITDA(x)	10.85	17.34	9.6	9.4	10.81	12.26	8.69	15.18	19.94	18	33.26
Net Sales Growth(%)	171.5	17.6	9.43	10.47	2.27	14.92	7.34	1.42	20.65	19.28	-1.31
EBIT Growth(%)	258.95	-10.41	31.94	0.33	26.09	10.03	-1.29	3.54	16.25	-21.75	-44.72
PAT Growth(%)	311.57	-15.99	40.63	-3.96	31.06	9.66	3.53	-6.51	18.5	-24.8	-43.65
EPS Growth(%)	125.79	-18.33	39.72	-4.61	30.29	9.21	5.42	-6.75	18.06	-24.99	-43.8
Debt/Equity(x)	0.04	0	0.02	0.02	0.01	0	0	0	0	0	0
Current Ratio(x)	1.67	1.75	3.07	2.79	2.84	2.28	3.16	3.36	2.61	2.07	1.9
Quick Ratio(x)	1.67	1.75	3.07	2.79	2.84	2.28	3.16	3.36	2.61	2.07	1.9
Interest Cover(x)	38.3	62.18	73.73	61.79	70.21	126.91	80.94	88.45	94.31	28.12	11.41
Total Debt/Mcap(x)	0.01	0	0.01	0.01	0	0	0	0	0	0	0

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 is almost debt free.

Cons

Promoter holding is low: 35.03%.
Stock is trading at 7.5 times its book value.
The company has delivered a poor profit growth of -13% 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.