IT Major Tech Mahindra’s shares zoomed 9.75% and witnessed their largest single-day jump in three years after the company appointed a new MD and CEO designate. Its shares reached an intraday high of ₹ 1164.70 apiece on the National Stock Exchange (NSE) and were trading at ₹ 1,144.00 apiece at 11:21 AM.
The company’s current CEO and MD, CP Gurnani will retire on December 19, 2023, and Mohit Josh, an Infosys veteran will take over thereafter. This gives him ample time for transition, according to the company.
Mohit Joshi has worked with Infosys for 22 years and is currently the president at the company. He will take charge of the IT arm of the Mahindra Group Company from December 20, 2023, for a period of five years, according to an exchange filing. This appointment is subject to the approval of the shareholders.
“Tech Mahindra’s growth journey has been remarkable. I am delighted to be joining the Tech Mahindra family and look forward to working closely with all the associates, partners, and customers to achieve new milestones, make a positive difference and #Risetogether,” he said.
Infosys has announced his resignation to be effective March 11, 2023, and his last day with the company will be on June 09. This is the second high-profile resignation from the company, following the one by Ravi Kumar who resigned as its president in October 2022.
Global Brokerage Nomura has a buy rating on the stock with a target price of ₹ 1260.00 on the shares which is a 10.13% upside as compared to the current share price of the company.
CLSA has a target price of ₹ 1200 on the IT major’s shares with a target price of ₹ 1,200, which implies an upside of 4.90 apiece.
Tech Mahindra is a large cap-stock with a market capitalization of ₹ 1,03,366 crores. It has an ideal return on equity of 21.51% and an ideal debt-to-equity ratio of 0.11. The company’s shares were trading at a price-to-earnings ratio (P/E) of 18.03, which is lower than the industry average of 26.13, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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.
