ScoreWhy is Tech Mahindra Ltd. ?
1
Poor long term growth as Operating profit has grown by an annual rate 7.37% of over the last 5 years
2
With ROE of 16.3, it has a Expensive valuation with a 4.7 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.06%, its profits have risen by 28.8% ; the PEG ratio of the company is 0.9
- At the current price, the company has a high dividend yield of 3.4
3
Below par performance in long term as well as near term
- Along with generating -7.06% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Tech Mahindra for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Tech Mahindra
-7.06%
-0.29
24.77%
Sensex
1.0%
0.08
12.13%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.94%
EBIT Growth (5y)
7.37%
EBIT to Interest (avg)
21.31
Debt to EBITDA (avg)
0.37
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
1.68
Tax Ratio
26.51%
Dividend Payout Ratio
93.65%
Pledged Shares
0
Institutional Holding
55.89%
ROCE (avg)
25.43%
ROE (avg)
16.46%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
21
Price to Book Value
4.75
EV to EBIT
19.43
EV to EBITDA
15.08
EV to Capital Employed
5.65
EV to Sales
2.27
PEG Ratio
0.94
Dividend Yield
3.37%
ROCE (Latest)
26.62%
ROE (Latest)
16.31%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
ROCE(HY)
Highest at 21.57%
DEBTORS TURNOVER RATIO(HY)
Highest at 8.11 times
PBDIT(Q)
Highest at Rs 2,365.60 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.44%
NET SALES(Q)
Highest at Rs 14,393.20 cr
PBT LESS OI(Q)
At Rs 1,799.20 cr has Grown at 28.7% (vs previous 4Q average
PAT(Q)
Highest at Rs 1,324.45 cr.
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Tech Mahindra
Operating Profit (PBDIT) - Quarterly
Highest at Rs 2,365.60 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 16.44% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1,799.20 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 8.11 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Net Sales - Quarterly
Highest at Rs 14,393.20 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,799.20 cr has Grown at 28.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,397.88 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,324.45 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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