Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Tech Mahindra is a leading provider of consulting-led integrated portfolio services to customers which are Telecom Equipment Manufacturers, Telecom Service Providers and IT Infrastructure Service Providers, Business Process Outsourcing Service Providers as well as Enterprise Solutions Services (BFSI, Retail & Logistics, Manufacturing, Energy and Utility (E&U), and Healthcare, Life Sciences, etc.) of Information Technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. It also provides comprehensive range of IT services, including IT enabled services, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services to a diversified base of corporate customers in a wide range of industries including insurance, banking and financial services, manufacturing, telecommunications, transportation and engineering services.Site:TECHMMain Symbol:TECHM
Stock trades at 1050.0, above its 50dma 1038.58. It also trades above its 200dma 942.97. The stock remains bullish on techicals
The 52 week high is at 1110.00 and the 52week low is at 561.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 50.05%
Weakness
– The company has delivered a poor sales growth of 7.40% over past five years.
Competition
– The industry trades at a mean P/E of 31.2x. Mindtree trades at the industry’s max P/E of 37.71x. TECHM trades at a P/E of 23.0x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 8.0. TECHM has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 4.7%. The max 1- month return was given by Infosys: a return of 12.74 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9730.0 cr compared to Rs 9490.0 cr for period ended Mar 2020, a rise of 2.5%
Operating Profits reported at Rs 1897.0 cr for period ended Mar 2021 vis-vis 1130.0 for period ended Mar 2020 .
Operating Margins expanded 758.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 11.17 compared to Rs 13.54 for previous quarter ended Dec 2020 and Rs 8.32 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 37855.0 cr for period ended Mar 2021 vis-vis sales of Rs 36868.0 cr for the period ended Mar 2020, a growth of 2.6%. The 3 year sales cagr stood at 7.1%.
Operating margins expanded to 18.0% for period ended Mar 2021 vis-vis 15.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 4428.0 cr for period ended Mar 2021 vis-vis sales of Rs 4033.0 cr for the period ended Mar 2020, rising 8.9%.
Company recorded a Net Profit CAGR of 5.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 8094.0 cr for period ended Mar 2021 vis-vis Rs 4358.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 80% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 10% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 38.32% vis-vis 39.05% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 11.36% vis-vis 11.45% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 50.05% – The company has delivered a poor sales growth of 7.40% over past five years.
