Tech Mahindra stock jump 13% after Q4 results—check out target price

Tech Mahindra share price today, Tech Mahindra share price BSE, Tech Mahindra Q4 results, Tech Mahindra share price target: Tech Mahindra shares on Friday, April 26 closed 7.55 per cent higher at Rs 1,280.15 on NSE, a day after the country's sixth largest IT firm by market value, posted its Q4 earnings report. The counter jumped over 13 per cent to the day's high of Rs 1,347 during the intraday trade. 

Tech Mahindra Q4 results

The IT firm posted a consolidated net profit of Rs 661 crore for the January-March period, up 29.5 per cent on a quarter-on-quarter basis. The quarterly net profit, however, fell short of analysts' expectations. Tech Mahindra's March-quarter revenue came in at Rs 12,871.3 crore, marking a sequential decline of 1.8 per cent, according to a regulatory filing. 

According to Zee Business research, Tech Mahindra's fourth-quarter net profit was estimated at Rs 690 crore and revenue at Rs 12,900 crore. Read more Tech Mahindra Q4 FY24 Results

Tech Mahindra Q4 Review: Here's what Anil Singhvi says

Zee Business Managing Editor Anil Singhvi saw support for Tech Mahindra shares in the cash market coming in at Rs 1,140 and Rs 1,165 levels and higher levels at Rs 1,220 and Rs 1,245. Numbers look bad but outlook better, the market guru added. 

Tech Mahindra share price target: What should investors do?

CLSA and Nomura each have maintained a 'buy' call on the Tech Mahindra stock. While CLSA has raised the target to Rs 1,589 from Rs 1,508 earlier, Nomura has a target set at Rs 1,460. 

On the flip side, Citi has maintained a 'sell' call on the stock with a reduced target of Rs 1,095 from Rs 1,125.

Morgan Stanley and JPMorgan have an 'underweight' rating each on Tech Mahindra shares. While Morgan Stanley has set the target at Rs 1,190, JPMorgan has raised the target to Rs 1,100 from Rs 1,050, respectively. 

Jefferies and Macquarie each have maintained an 'underperform' rating on the stock with a target of Rs 1,065 (reduced from Rs 1,080 earlier) and Rs 930, respectively.

HSBC has maintained a 'hold' call Tech Mahindra with a target of Rs 1,300. According to HSBC, the new turnaround plan looks sensible, but execution remains challenging, especially in the current environment. Margin expansion is highly contingent on pyramid improvement while maintaining average pricing, which will be tough to deliver. 

Market Commentary

"As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed, differentiates us from competitors. FY'24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption," said Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra.

Tech Mahindra dividend

The firm announced a final dividend of Rs 28 per equity share of the face value of Rs 5 each, i.e., a 560 per cent payout, subject to the approval at the forthcoming Annual General Meeting (AGM).

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