TechM shares: ‘Near-term weakness but medium-term growth outlook positive’

“While management anticipates near-term weakness increase in revenueIn its report, the financial services company said it is optimistic about its medium-term growth outlook, driven by 5G, cloud, engineering, sustainability and Industry 4.0.

Let’s see what the brokerage has to say,

MK Global

, techm provided further insight into its NXT.NOW growth strategy, focusing on connectivity, experience, cloud, engineering and sustainability through differentiated offerings.

Highlighted the progress the company has made on large deals, customer mining, and alliances to accelerate revenue growth, while driving delivery excellence to drive margin expansion.

The company expects the leadership transition to be smooth as it is a planned succession and diligently executed with a reasonable time period for the transition to the new leader and a change in growth strategy is unlikely.

Management unveiled its plan to focus on building the products and platforms business and growing the co-creation business.

The Products and Platforms business is currently at a $450 million run rate and has the potential to reach $1 billion in the next three years.

Roll forward our target price to Mar-25E EPS and ‘Buy’ at 16x its Mar-25E EPS with TP of Rs 1,270 (earlier Rs 1,220) considering the expected improvement in margin trajectory, better capital allocation, and reasonable Keep ‘. Evaluation.

ICICI Direct

ICICI Direct buys Tech Mahindra with a target price of Rs. a buy limit between 1127 and 1,110–1,112. Tech Mahindra. is the current market value of 1109.7.

– The time period mentioned by the analyst is Intraday when Tech Mahindra price can reach the defined target.

Brokerage recommends hold on stop loss 1099.80.