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TECH MAHINDRA LTD.

NSE : TECHMBSE : 532755ISIN CODE : INE669C01036Industry : IT - Software House : Mahindra & Mahindra
BSE728.802.55 (+0.35 %)
PREV CLOSE ( ) 726.25
OPEN PRICE ( ) 724.85
BID PRICE (QTY) 729.45 (79)
OFFER PRICE (QTY) 730.20 (208)
VOLUME 15403
TODAY'S LOW / HIGH ( )723.05 732.15
52 WK LOW / HIGH ( )607.9 846
NSE730.956.6 (+0.91 %)
PREV CLOSE( ) 724.35
OPEN PRICE ( ) 724.45
BID PRICE (QTY) 730.65 (18)
OFFER PRICE (QTY) 731.00 (5178)
VOLUME 1302411
TODAY'S LOW / HIGH( ) 722.70 732.80
52 WK LOW / HIGH ( )607.15 846.5
AnalystDate31 Jul 2019
BSECode532755
BlogURLNA
NoteDescriptionTECHM has soft start to the year with revenue declining 1.7% QoQ while margin contracted by 390bps to 11.5%. TCV deal wins remained healthy during the quarter (USD475mn across Enterprise and Communications). Going forward, we expect communication to post 7.2%YoY in FY20 on the back of ramp up of deal won in the last few quarters. Also 5G rollout is expected to contribute from CY20 onwards which will accelerate the revenue growth going ahead. While telecom to see improvement, we see enterprise segment to continue to post laggard growth in FY20 due to continued challenges in BFSI and Manufacturing. TCV wins gives some revenue visibility for FY20, However the margin dip in 1QFY20 and continued headwinds like transition costs, investment in people and lower Utilization, we expect to see margin pressure for FY20 (much below their FY19 margin). Thus we have curtailed our revenue /PAT estimates for FY20 and FY21 by3.2%/7.8% and 2.7%/3.6%. Factoring the margin pressure, we reduce our target price from Rs814 to Rs706 and We downgrade the stock to ACCUMULATE.
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