ScoreWhy is Tech Mahindra Ltd. ?
1
High Management Efficiency with a high ROE of 16.46%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Operating profit has grown by an annual rate 7.26% of over the last 5 years
4
The company has declared Positive results for the last 6 consecutive quarters
- PAT(9M) At Rs 3,501.80 cr has Grown at 26.76%
- ROCE(HY) Highest at 21.57%
- DEBTORS TURNOVER RATIO(HY) Highest at 8.11 times
5
With ROE of 16.3, it has a Expensive valuation with a 5.6 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 -12.28%, its profits have risen by 37% ; the PEG ratio of the company is 0.9
6
High Institutional Holdings at 55.41%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.28% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tech Mahindra should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tech Mahindra for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Tech Mahindra
-12.28%
-0.50
24.73%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.50%
EBIT Growth (5y)
7.26%
EBIT to Interest (avg)
21.91
Debt to EBITDA (avg)
0.37
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
1.68
Tax Ratio
26.13%
Dividend Payout Ratio
93.65%
Pledged Shares
0
Institutional Holding
55.41%
ROCE (avg)
25.43%
ROE (avg)
16.46%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
28
Price to Book Value
5.58
EV to EBIT
25.09
EV to EBITDA
19.11
EV to Capital Employed
6.68
EV to Sales
2.74
PEG Ratio
0.93
Dividend Yield
2.87%
ROCE (Latest)
26.62%
ROE (Latest)
16.31%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
PAT(9M)
At Rs 3,501.80 cr has Grown at 26.76%
ROCE(HY)
Highest at 21.57%
DEBTORS TURNOVER RATIO(HY)
Highest at 8.11 times
PBDIT(Q)
Highest at Rs 2,168.00 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 15.49%
PBT LESS OI(Q)
Highest at Rs 1,619.30 cr.
NET SALES(Q)
Highest at Rs 13,994.90 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 2,168.00 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 15.49% 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 1,619.30 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
Profit After Tax (PAT) - Nine Monthly
At Rs 3,501.80 cr has Grown at 26.76%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 13,994.90 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 1,619.30 cr has Grown at 25.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,291.05 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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