Tech Mahindra Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹142,453.35 crore, PE ratio of 60.42, debt-to-equity ratio of 9.34, and return on equity of 8.49%. These figures reflect the company’s financial health and current market valuation.
Content:
- Tech Mahindra Ltd Overview
- Tech Mahindra Financial Results
- Tech Mahindra Financial Analysis
- Tech Mahindra Company Metrics
- Tech Mahindra Stock Performance
- Tech Mahindra Peer Comparison
- Tech Mahindra Shareholding Pattern
- Tech Mahindra History
- How To Invest In Tech Mahindra Ltd Share?
- Tech Mahindra Limited Fundamental Analysis – FAQs
Tech Mahindra Ltd Overview
Tech Mahindra Ltd is a leading provider of digital transformation, consulting, and business re-engineering services. It operates in the Information Technology (IT) sector, offering services across various industries including telecommunications, manufacturing, and financial services.
The company has a market capitalisation of ₹142,453.35 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 7.74% below its 52-week high and 32.62% above its 52-week low.
Tech Mahindra Financial Results
Tech Mahindra Ltd showed fluctuations from FY 22 to FY 24, with sales decreasing from ₹44,646 crore to ₹51,996 crore and net profit falling from ₹5,630 crore to ₹2,397 crore. The company experienced changes in OPM and EPS over the years.
1. Revenue Trend: Sales increased from ₹44,646 crore in FY 22 to ₹53,290 crore in FY 23, then decreased to ₹51,996 crore in FY 24.
2. Equity and Liabilities: Interest expenses rose from ₹163 crore in FY 22 to ₹392 crore in FY 24, indicating increased financial liabilities. Depreciation also increased from ₹1,520 crore to ₹1,817 crore over the same period.
3. Profitability: Operating Profit Margin (OPM) declined from 18% in FY 22 to 9% in FY 24, reflecting decreased operational efficiency. EBITDA saw a decrease from ₹9,132 crore in FY 22 to ₹5,423 crore in FY 24.
4. Earnings per Share (EPS): EPS decreased from ₹63 in FY 22 to ₹27 in FY 24, indicating a decline in profitability per share.
5. Return on Net Worth (RoNW): While specific RoNW figures are not provided, the decrease in net profit from ₹5,630 crore in FY 22 to ₹2,397 crore in FY 24 suggests a negative impact on RoNW, indicating reduced returns on shareholders’ equity.
6. Financial Position: The company’s financial position weakened with net profit declining and substantial decreases in EBITDA and operating profit, indicating challenges in maintaining robust financial health.
Tech Mahindra Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 51,996 | 53,290 | 44,646 |
| Expenses | 47,489 | 45,261 | 36,626 |
| Operating Profit | 4,506 | 8,029 | 8,020 |
| OPM % | 9 | 15 | 18 |
| Other Income | 917 | 965 | 1,112 |
| EBITDA | 5,423 | 8,994 | 9,132 |
| Interest | 392 | 326 | 163 |
| Depreciation | 1,817 | 2,194 | 1,520 |
| Profit Before Tax | 3,214 | 6,475 | 7,449 |
| Tax % | 26 | 25 | 24 |
| Net Profit | 2,397 | 4,857 | 5,630 |
| EPS | 27 | 55 | 63 |
| Dividend Payout % | 150.04 | 91.31 | 71.07 |
* Consolidated Figures in Rs. Crores
Tech Mahindra Company Metrics
Tech Mahindra’s market cap is ₹142,453.35 crore with a book value of ₹273 per share. The face value per share is ₹5. Total debt is ₹2,536.7 crore, ROE is 8.49%, and quarterly EBITDA is ₹1,711.8 crore. The dividend yield stands at 2.48%.
Market Capitalization:
Market Capitalization represents the total market value of Tech Mahindra’s outstanding shares, amounting to ₹142,453.35 crore.
Book Value:
The book value per share of Tech Mahindra is ₹273 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Tech Mahindra’s shares is ₹5, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 1.19 measures how efficiently Tech Mahindra uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Tech Mahindra stands at ₹2,536.7 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 8.49% measures Tech Mahindra’s profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Tech Mahindra is ₹1,711.8 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 2.48% shows the annual dividend payment as a percentage of Tech Mahindra’s current share price, indicating the return on investment from dividends alone.
Tech Mahindra Stock Performance
Tech Mahindra Ltd delivered returns of 23.4% in one year, 2.81% over three years, and 18.7% over five years, indicating varied performance. This showcases the company’s ability to provide substantial returns in the short term while exhibiting more moderate growth over longer investment periods.
| Period | Return on Investment (%) |
| 1 Year | 23.4 |
| 3 Years | 2.81 |
| 5 Years | 18.7 |
Example: If an investor had invested ₹10,000 in Tech Mahindra’s stock:
1 year ago, their investment would be worth ₹1,234.
3 years ago, their investment would have grown to ₹1,028.
5 years ago, their investment would have increased to approximately ₹1,187.
Tech Mahindra Peer Comparison
Tech Mahindra Ltd, with a CMP of ₹1,507 and a P/E ratio of 59, has a market cap of ₹1,47,344 Cr and a one-year return of 23%. Compared to peers like Persistent Systems (92% return) and HCL Technologies (36% return), Tech Mahindra shows moderate performance within the IT sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| TCS | 4,229 | 32 | 15,29,999 | 23 | 1472138 | 1.07 | 0.95 | 4.57 | 1.91 |
| Infosys | 1,771 | 28 | 7,35,220 | 29 | 45,32,160 | 3.45 | 0.93 | 6.95 | 5.12 |
| HCL Technologies | 1,590 | 26 | 4,31,459 | 36 | 21,66,976 | 1.91 | 0.94 | 6.33 | -4.54 |
| Wipro | 491 | 23 | 2,56,973 | 19 | 33,13,816 | -12.29 | 0.85 | 15.29 | -3.97 |
| LTIMindtree | 5,374 | 35 | 1,59,150 | 5 | 337492 | -3.57 | 0.83 | 16.59 | -3.3 |
| Tech Mahindra | 1,507 | 59 | 1,47,344 | 23 | 1589390 | 0.11 | 0.96 | 3.97 | 13.42 |
| Persistent Sys | 4,699 | 62 | 72,389 | 92 | 3,39,202 | -2.28 | 0.95 | 5.35 | 8.06 |
Tech Mahindra Shareholding Pattern
Tech Mahindra Ltd’s shareholding pattern saw slight changes from December 2023 to June 2024. Promoter holdings remained stable at around 35.05%. FII holdings decreased from 24.58% to 23.27%, while DII holdings increased from 29.01% to 30.76%. Retail and others’ shares slightly decreased from 11.29% to 10.91%.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 35.05 | 35.09 | 35 |
| FII | 23.27 | 24.15 | 24.58 |
| DII | 30.76 | 29.52 | 29.01 |
| Retail & others | 10.91 | 11.23 | 11.29 |
Tech Mahindra History
Tech Mahindra Limited is a prominent Indian IT services provider, offering digital transformation, consulting, and business re-engineering solutions. The company operates through two main segments: IT Services and Business Processing Outsourcing (BPO), serving clients globally across various industries.
Tech Mahindra’s service portfolio encompasses telecom services, application outsourcing, infrastructure management, engineering services, and platform solutions. The company has established a strong presence in key markets, including the Americas, Europe, India, and other regions worldwide.
The company caters to diverse industries such as communications, manufacturing, technology, media and entertainment, banking, financial services, insurance, retail, and logistics. Tech Mahindra’s global reach is extended through its subsidiaries, including Tech Mahindra Luxembourg S.a r.l. and Tech Mahindra Technology Services LLC, enabling localized service delivery.
How To Invest In Tech Mahindra Ltd Share?
To invest in Tech Mahindra Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Tech Mahindra shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Tech Mahindra Limited Fundamental Analysis – FAQs
Fundamental analysis of Tech Mahindra examines key financial metrics: Market Cap (₹142,453.35 crore), PE Ratio (60.42), Debt to Equity (9.34), and Return on Equity (8.49%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the IT services sector.
The market capitalization of Tech Mahindra Ltd is ₹142,453.35 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Tech Mahindra Limited is a leading Indian IT services company. It specializes in providing digital transformation, consulting, and business re-engineering services across various industries. The company offers a wide range of IT and BPO services to global clients.
Tech Mahindra is a public limited company, part of the Mahindra Group. While the Mahindra Group, through its holding companies, owns a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Tech Mahindra typically include Mahindra & Mahindra (the parent company) as a major stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Tech Mahindra operates in the Information Technology (IT) services industry. It provides a wide range of services including digital transformation, consulting, application development, infrastructure management, and business process outsourcing to clients across various sectors globally.
To invest in Tech Mahindra shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Tech Mahindra is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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