The shares of most IT companies like TCS, Infosys and Wipro, tanked this year; but Tech Mahindra is the worst-performing stock on a year-to-date basis. The Indian markets are mostly in the red due to the impacts of the Russia Ukraine War and the fear of a looming lockdown, due to the situation in China.
At the beginning of this year, on 3rd January 2022, the shares of Tech Mahindra were trading at ₹1,784.80 apiece. However, they have tanked by 40.39% on a year-to-date basis. This fall is more than the fall experienced by the other constituents of the fifty share index.
The shares of the company had reached a 52-week high of ₹1,838.00 in December last year. Since then, they have fallen by -41.85%. However, they have risen 7.09% from their 52-week low of ₹ 993.00. The shares are trading at ₹ 1068.75 levels.
Tech Mahindra on May 13, said that its profit after tax (PAT) for the quarter ended March 2022 stood at Rs 1,506 crore, up 39.2 per cent over the Rs 1,081 crore it reported in the same quarter last year. Q4FY22 revenue rose 24.5% YoY and 5.8% QoQ to Rs. 12,116cr driven by the growth across all verticals, however, its EBITDA margin was down by 230bps YoY to 17.2%. This was mainly due to higher depreciation and amortisation expenses (+40.5% YoY, 33.7% QoQ) from additional investments in hardware and software.
The company’s attrition rate was at 24% in the March quarter, the same as the previous quarter. However, it was sharply higher than 13 per cent in the year-ago quarter.
On 18th May 2022, Geojit BNP Paribas reduced the target price of the stock to ₹ 1,372. However, it maintained a buy rating on the stock. On 16th May 2022, IDBI Capital and ICICI Direct reduced the target price of the stock to ₹ 1189.05.
Tech Mahindra Ltd. is one of the top 5 IT companies in India which provides IT and ER&D services for telecommunication equipment manufacturers, telecom service providers, systems integrators and software vendors.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
