Tech Mahindra - 3QFY17 Result Update - Revenue performance impressive - Reliance Securities

Looking ahead, Tech Mahindra expects the Enterprise Business to sustain growth momentum on the back of good large deal wins. The Communications vertical has stabilised, though it may take 1-2 quarters to see meaningful momentum. On the negative side, we believe currency and pricing pressure will impact margins, as could a wage hike in 4QFY17E, while employee pyramid and higher acquisition margins are key levers for margin defence. We remain enthused with Tech Mahindra's strong revenue growth. Valuation at 12.2x FY18E EPS also leaves good margin of safety for investors on the back of a healthy 15% EPS CAGR over FY17E-FY19E. We retain our BUY rating on Tech Mahindra with a revised TP of Rs540 (Rs475).

Shares of TECH MAHINDRA LTD. was last trading in BSE at Rs.480.5 as compared to the previous close of Rs. 461.55. The total number of shares traded during the day was 352695 in over 6235 trades.

The stock hit an intraday high of Rs. 482.75 and intraday low of 462. The net turnover during the day was Rs. 167830652.

Source : Equity Bulls

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