Tech Mahindra - Q1 FY22 Result Report - YES Securities

(Rating: ADD, TP: Rs1,334, Upside: 10.2%)

- Revenue was broadly in line at $1,384 mn (up 4.1% QoQ). Growth was led by strong performance in enterprise segment that grew 4.7% in USD terms; whereas CME (Communication, Media and Entertainment) reported modest growth of 3.2% QoQ in USD terms.

- In term of geographical break up, growth was supported by strong performance in the Americas (up 6.8% QoQ) and Europe (up 6.6% QoQ), while Rest of World showed degrowth of 2.7% QoQ in USD terms.

- EBIT margin declined 133 bps QoQ to 15.2% (as per expectation), sequential dip on account of wage hike in the quarter

- We maintain ADD rating on the stock with revised target price of Rs 1,334 at 18.5x on FY23E EPS. Trades at PER of 16.8x on FY23 earnings.

Shares of Tech Mahindra Limited was last trading in BSE at Rs. 1211 as compared to the previous close of Rs. 1209.45. The total number of shares traded during the day was 70629 in over 4565 trades.

The stock hit an intraday high of Rs. 1218 and intraday low of 1195.95. The net turnover during the day was Rs. 84997071.

Source : Equity Bulls

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