Tech Mahindra share price hits new high on back of good Q1 numbers; stock up 10%

​Amid 'better-than-expected' Q1 numbers, the shares of Tech Mahindra touched a fresh record high of Rs 1237 per share after surging by around 10 per cent on the BSE intraday trade on Thursday. The Nifty heavyweight shares opened over 5 per cent higher, becoming the top gainer today. 

The information and technology major reported an almost 40 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 1,353 crore in the June-ended quarter of the financial year 2021-22, as against Rs 972 crore in the same period last year. On a sequential basis, it grew by 25.13 per cent.  

Similarly, the consolidated revenue from operations in the first quarter of FY22 grew by around 12 per cent YoY at Rs 10,198 crore, as compared to Rs 9,106 crore in the same period a year ago. On a quarter-on-quarter basis, it rose by 4.8 per cent from Rs 9,730 crore in the preceding quarter. 

The company beat profit expectations by a wide margin as most brokerages had projected it would rise between 16-23 per cent YoY. Similarly, revenue figures are marginally higher than analysts' estimates. 

In this regard, brokerages posted their belief in the stock. Citi maintains a Buy rating on Tech Mahindra after better-than-expected Q1 and raises FY22/23 EPS estimates by 3-4 per cent. It mentions, deals TCVs are strong at $185 million for the second consecutive quarter. It sets a price target of Rs 1380 apiece. 

While JP Morgan has an 'overweight' rating on Tech Mahindra and expects the stock price to grow Rs 1250 per share. It mentions, the company reported strong Q1 numbers with a beat across profit, revenues, and margins and says, new deals wins were healthy. 

In dollar terms, the revenue stood at $1383.6 million; up 4.1 per cent QoQ and 14.6 per cent YoY, Tech Mahindra said in the statement, adding further the revenue growth in constant currency terms was reported at 3.9 per cent on a sequential basis.