This IT stock under Mahindra Group reached its 52- week high after the company announced its recent restructuring plans to merge with its subsidiary company. The stock witnessed an uptrend growth in its price in the market today.
Share price of Tech Mahindra opened at Rs. 1290.05 per share and gained 2% in Friday market to reach its 52- week high of Rs. 1318.90 levels. The stock returned 17.47% in the last six months and 24.79% in the last one year.
On 21 Sep 2023, the company approved its restructuring plan to merge Tech Mahindra Credit Solution (TMCSI) with its parent company Tech Mahindra Americas Inc. (TMA) which is a wholly owned material subsidiary of Tech Mahindra. The merger had taken place in order to enhance the company’s operational risk and reduce its compliance risk.
As per its financial statements, the company has recorded reduction in both its revenue and net profits. It noted a revenue of Rs. 13,159 crore in Q1FY24, a decline of 4.07% from Rs. 13,718.2 crore in Q3FY24. Its net profit of Rs. 1,117 crore in Q3FY24 decreased 38% to Rs. 692.5 crore in Q1FY24. It has a low debt to equity ratio of 0.06 and maintains a good average ROE for the last three years of 19.71
Tech Mahindra is a leading provider of information technology solutions and consulting services under the Mahindra Group. The company offers its services in multiple companies and is based in India. It started back in 1986. It provides its services for many upcoming technologies such as 5G, Cybersecurity, AI, etc.
Written by Bhumika Khandelwal