Stock Performance and Market Context
On 3 February 2026, Tech Mahindra Ltd. opened with a notable gap-up of 6.62%, signalling strong buying interest from the outset. The stock subsequently touched an intraday high of Rs.1850, representing a 7.32% increase from the previous close. Despite this impressive surge, the stock underperformed its sector by 1.03% on the day, reflecting broader sectoral pressures.
Tech Mahindra has been on a positive trajectory for the last two trading sessions, delivering a cumulative return of 1.31% during this period. The stock’s price currently sits above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained upward trend over multiple time horizons. However, it remains slightly below its 5-day moving average, suggesting some short-term consolidation.
In contrast, the broader market experienced a loss of momentum after a strong gap-up opening. The Sensex, which opened 3,656.74 points higher, declined by 1,250.66 points to close at 84,072.54, down 2.95%. The benchmark index remains 2.48% shy of its own 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA itself is positioned above the 200DMA, signalling mixed technical signals. Mega-cap stocks led the market gains, with the Sensex rising 2.95% on the day.
Financial Strength and Operational Metrics
Tech Mahindra’s financial profile continues to support its market performance. The company boasts a high return on equity (ROE) of 16.46%, reflecting efficient management and effective utilisation of shareholder capital. Its return on capital employed (ROCE) for the half-year period stands at an impressive 21.57%, underscoring strong profitability relative to capital investment.
Debt levels remain minimal, with an average debt-to-equity ratio of zero, indicating a conservative capital structure and limited reliance on external borrowings. This financial prudence is further reflected in the company’s high debtors turnover ratio of 8.11 times for the half-year, signalling effective receivables management and cash flow generation.
Operationally, Tech Mahindra has delivered positive results for seven consecutive quarters, with quarterly PBDIT reaching a peak of Rs.2,365.60 crore. This consistent earnings growth has contributed to the stock’s upward momentum and investor confidence.
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Valuation and Market Position
Tech Mahindra’s current market capitalisation is graded at 1, reflecting its status as a large-cap stock within the Computers - Software & Consulting sector. The company’s Mojo Score stands at 71.0, with a recent upgrade in its Mojo Grade from Hold to Buy as of 14 January 2026. This upgrade highlights improved market sentiment and recognition of the company’s financial and operational strengths.
The stock’s price-to-book value ratio is 6.1, indicating a premium valuation relative to its book value. While this suggests the market places a high value on the company’s assets and earnings potential, it also reflects a valuation above the average of its peers. The price-to-earnings-to-growth (PEG) ratio is 1.2, balancing the company’s profit growth rate of 28.8% over the past year against its valuation metrics.
Institutional investors hold a significant 55.89% stake in Tech Mahindra, underscoring confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with greater market stability and informed trading activity.
Comparative Performance and Historical Context
Over the past year, Tech Mahindra has delivered a total return of 5.36%, which trails the Sensex’s 8.92% gain over the same period. The stock’s 52-week low was recorded at Rs.1209.7, highlighting the substantial appreciation to the current high of Rs.1850. This represents a gain of approximately 53% from its low point within the last year.
Despite the stock’s recent rally, the company’s operating profit has grown at a modest annual rate of 7.37% over the last five years. This slower long-term growth rate contrasts with the more robust profit increase seen in the past year, suggesting a recent acceleration in earnings performance.
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Summary of Key Metrics
Tech Mahindra’s recent price action, culminating in a new 52-week high, is supported by a combination of strong financial ratios and consistent earnings growth. The company’s ROE of 16.46% and ROCE of 21.57% place it among the more efficient operators in its sector. Its zero debt-to-equity ratio and high debtors turnover ratio reflect sound financial management and operational discipline.
While the stock trades at a premium valuation, this is balanced by its recent profit growth and institutional backing. The company’s presence in the top 1% of all stocks rated by MarketsMojo across a universe of 4,000 stocks further emphasises its quality and market standing.
Tech Mahindra’s achievement of a Rs.1850 share price marks a significant milestone, reflecting both the company’s underlying fundamentals and the broader market dynamics influencing the Computers - Software & Consulting sector.
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