Profit

BSE Code: | NSE Code: | ISIN: | Sector:

NSE
730.00
Change Change %
15.10 2.11%

Updated:16 Nov, 2018, 14:24 PM IST

BSE
727.05
Change Change %
13.55 1.90%

Updated:16 Nov, 2018, 14:52 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Nomura
N/A
01-08-2017 Hold 404.20 425.00
N/A
Target Hit Long (1Y)
01-08-2018

Nomura retains neutral on Tech Mahindra

Tech Mahindra's CC revenue fell 0.6% q-q (Nomura: 0.5%), while EBIT margins were ahead at 9.4%, 120bps q-q (Nomura: 8.7%). The margin beat was driven by reversal in one-off restructuring costs in LCC and headcount cuts of around 4% q-q in IT Services. TECHM guided for gradual margin improvement, despite wage hike impacts in 2Q as it leverages utilization, automation, better margins in LCC and employee pyramid. Asking rate to meet last year margins in FY18F remain steep, in our view.

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