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Shares of software services provider, Tech Mahindra Ltd, rose as much as 4.3 per cent to Rs 683.75 on strong Q1 results.
The company had on Monday reported a 12.4 per cent increase in profit after tax as the cost-cutting measures start to bear fruit. Revenue rose 12.8 per cent to Rs 8,276 crore from Rs 7,336 crore last year. Revenue in dollar terms was up 7.5 per cent from the same quarter last year to $1,224 million.
Investec says pace of deal wins implies that the long-awaited improvement in growth from telecom segment has begun. It has kept the rating unchanged at “buy” and a price target of Rs 786.
Jefferies has raised the rating to “hold” from “underperform” and price target to Rs 715 from Rs 625. It has raised constant currency growth estimate for FY19 slightly but has kept USD growth rate unchanged to factor in higher cross-currency headwind.
About 26 of 41 brokerages have rated the stock “buy” or higher, seven ”hold” and eight “sell” or lower; their median price target is Rs 747.50.
Around 4.4 million shares changed hands, 1.3 times their 30-day average. Up to Monday's close, Tech Mahindra stock had risen 30 per cent this year compared to Nifty IT index's 23.6 per cent gain.
(With inputs from Reuters)
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