The IT company’s plan touched the hearts of brokers, with the share receiving a very high ‘buy’ rating.

New Delhi. Brokerage houses are bullish on shares of information technology major, Tech Mahindra. After Q4 results, the tech stock has received the highest brokerage analyst upgrade among all stocks in the Nifty 50. After the January-March quarter results, ‘buy’ calls on Tech Mahindra stock have increased from 14 to 21. ‘Hold’ calls reduced from 13 to 10 and ‘Sell’ calls also reduced from 18 to 14. This indicates that brokerage confidence has increased on this stock and they see the potential for further earnings. Shares of Tech Mahindra closed at Rs 1,248, down 1.49 percent in the previous trading session, Friday.

Releasing its quarterly results, Tech Mahindra unveiled a three-year plan to grow operating profit by more than 15 percent by 2026-27 and achieve higher revenue, including strengthening customer accounts, restructuring and Focused on new investments. Market experts have liked the company’s plan, with shares of Tech Mahindra returning 19 percent to investors in a year.

The largest buyback in Apple’s history, the company will buy back shares worth ₹ 9.18 lakh crore.

Tech Mahindra’s revenue stood at Rs 12,871 crore
Tech Mahindra released its Q4 FY2024 results on April 25. Tech Mahindra’s revenue from operations rose 6.2% year-on-year to Rs 12,871.3 crore. The company’s revenue in the previous quarter (Q3FY24) was ₹13,101.3 crore. In the January-March quarter, the company’s net profit fell 41% year-on-year (YoY) to ₹ 661 crore. While the company’s net profit in the previous quarter (Q3FY24) was ₹ 510 crore. This means that the company’s net profit increased by 29.5% on a quarter-on-quarter (QoQ) basis. The company’s board of directors had also approved a dividend of Rs 28 per share.

Check the target price.
Morgan Stanley downgrades Tech Mahindra from ‘underweight’ to ‘overweight’ after the fourth quarter results are out, according to a Moneycontrol report. Apart from this, the brokerage has also increased the target price of this share from Rs 1190 to Rs 1490. The medium-term outlook for the stock is positive, says brokerage.Domestic brokerage firm Prabhodas Leeladhar also likes Tech Mahindra’s growth strategy. HSBC has given Tech Mahindra a ‘Hold’ rating and a target price of Rs 1,300.

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