About the Company:
Tech Mahindra is an Indian conglomerate provider of information technology, networking technology solutions and Business Process Outsourcing to various industry lines. Mr. Anand Mahindra is the Chairman of the US $20.7 billion Mahindra Group, headquartered in Mumbai.
QoQ & YoY Performance:
India’s leading IT Company has declared the results for the second quarter of fiscal year ending March, 2019.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs.90,699 millions, climbed by 4.82% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs. 75,690 millions, increased by 3.25%. EBITDA numbers increased by 3.73%.
- YoY Performance: The Company has reported 5.10% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company have witnessed a jump of 3.65%. EBITDA numbers up by 14.28%.
- Profitability of the company: Net profits of the company landed to Rs. 11,112 millions, surged by 17.08% QoQ and 5.24% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the company though its wholly owned subsidiary has acquired Mad*Pow Media Solutions for Rs. 1,151 million in this quarter. The company has posted a nominal increase of 5.10% in their core revenue sources. EBITDA numbers have seen an uptick of 14.28% on YoY basis while net profits are seen 5.24% increase. At a P/E multiple of 17.75, the stock is trading at a price of Rs.773.25, in comparison to the Industry P/E of 22.73, we advise you to 'BUY' for a target of Rs.990 in one year horizon.