Views on Tech Mahindra and Circle Health sign 10-year strategic deal: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - IT, Angel Broking)

Tech Mahindra and Circle Health sign 10-year strategic deal:

"Tech Mahindra announced that it has been selected by Circle Health after a competitive procurement process to become their chosen technology partner for the next 10 years. The project will be delivered by nth Dimension, a newly formed wholly owned subsidiary of Tech Mahindra in the United Kingdom. The deal was signed today and is worth a projected £50mn (US $80mn) over the 10 years. The news is positive for the company has it will further augment its Healthcare business. Under the new deal, Tech Mahindra, which gets about 10% of its sales from healthcare clients now will develop technologies for patient care and operational delivery and also reduce costs for the UK firm. We maintain our BUY with price target of INR 683."

Shares of TECH MAHINDRA LTD. was last trading in BSE at Rs.530 as compared to the previous close of Rs. 545.9. The total number of shares traded during the day was 275345 in over 7960 trades.

The stock hit an intraday high of Rs. 547.65 and intraday low of 528.5. The net turnover during the day was Rs. 147126953.

Source : Equity Bulls

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