By Aditya Raghunath
Investing.com — IT services company Tech Mahindra Ltd (NS:) reported its numbers for the March 2021 quarter, and it disappointed on some key parameters including profit. The company reported a consolidated profit of Rs 1,081.4 crore for the March 2021 quarter. This is a 17.4% sequential decline in profit from Rs 1,309.8 crore in December 2020.
Tech Mahindra’s revenue was up 0.9% sequentially to Rs 9,729.9 crore from Rs 9,647.1 crore in the December quarter. However, brokerage firms are bullish about the stock. The stock is trading at Rs 953 as of this report.
Sharekhan has assigned a buy rating for Tech Mahindra with a target of Rs 1,150. It said, “We believe the enterprise segment could outperform peers on growth, given the strong recovery in its sub-verticals, healthy deal pipeline, improved competencies, and a sharper go-to-market strategy.”
ICICI Direct has a target of Rs 1,120 on Tech Mahindra. It says that the company’s focus on winning deals, the revival of manufacturing growth, and increased traction in 5G spend (on communication & enterprise side), combined with acceleration in Europe and cloud is expected to drive revenues.
Foreign brokerages are even more bullish. CLSA has a target of Rs 1,200 on the company while JP Morgan says the stock price can touch Rs 1,230.