Tech Mahindra Faces Stock Volatility Amid Broader Market Challenges and High P/E Ratio

Apr 07 2025 09:20 AM IST
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Tech Mahindra's stock has shown notable volatility, opening at Rs 1,211.25 with a significant loss. The company, categorized as a large-cap stock with a market capitalization of Rs 1,19,520.45 crore, has a P/E ratio of 34.57 and a dividend yield of 3.25%. Over the past year, it has declined by 3.36%.
Tech Mahindra, a prominent player in the IT software industry, has experienced significant volatility in its stock performance today. The stock opened at Rs 1,211.25, reflecting an initial loss of 8.43%, and has since traded at this price. Currently, it is approximately 3.93% away from its 52-week low of Rs 1,163.70. Over the past three days, Tech Mahindra has seen a decline of 14.86%, underperforming the sector by 0.89%.

In terms of market metrics, Tech Mahindra's market capitalization stands at Rs 1,19,520.45 crore, categorizing it as a large-cap stock. The company's price-to-earnings (P/E) ratio is 34.57, notably higher than the industry average of 26.99. The stock has been trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.

Despite the current challenges, Tech Mahindra offers a high dividend yield of 3.25%. Over the past year, the stock has declined by 3.36%, while the broader Sensex has seen a decrease of 2.73%.
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