ScoreWhy is Tech Mahindra Ltd. ?
1
Poor long term growth as Operating profit has grown by an annual rate 6.02% of over the last 5 years
2
With ROE of 16.9, it has a Very 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 -3.65%, its profits have risen by 17.9% ; the PEG ratio of the company is 1.6
3
Below par performance in long term as well as near term
- Along with generating -3.65% 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, Medium Return
Absolute
Risk Adjusted
Volatility
Tech Mahindra
-3.65%
-0.15
24.46%
Sensex
-4.15%
-0.31
13.40%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.46%
EBIT Growth (5y)
6.02%
EBIT to Interest (avg)
20.37
Debt to EBITDA (avg)
0.35
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
1.73
Tax Ratio
26.89%
Dividend Payout Ratio
93.65%
Pledged Shares
0
Institutional Holding
56.10%
ROCE (avg)
24.99%
ROE (avg)
15.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
21
Price to Book Value
4.66
EV to EBIT
18.43
EV to EBITDA
14.59
EV to Capital Employed
5.64
EV to Sales
2.32
PEG Ratio
1.55
Dividend Yield
3.19%
ROCE (Latest)
30.62%
ROE (Latest)
16.93%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
ROCE(HY)
Highest at 22.59%
PBDIT(Q)
Highest at Rs 2,565.30 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 17.02%
PBT LESS OI(Q)
Highest at Rs 1,995.30 cr.
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 5,105.40 cr
NET SALES(Q)
Highest at Rs 15,076.10 cr
PAT(Q)
Highest at Rs 1,353.80 cr.
EPS(Q)
Highest at Rs 15.29
-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 2,565.30 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 17.02% 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 1,995.30 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 15,076.10 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 1,995.30 cr has Grown at 30.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,527.45 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,353.80 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 15.29
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 5,105.40 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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