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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Tech Mahindra Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:44 am

Market Cap 1,65,013 Cr.
Current Price 1,686
High / Low 1,808/1,163
Stock P/E50.4
Book Value 270
Dividend Yield2.37 %
ROCE11.9 %
ROE8.63 %
Face Value 5.00
PEG Ratio-4.85

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mudunuru Ltd 24.1 Cr. 7.73 15.6/6.35 0.340.00 %72.9 %374 % 2.00
Naapbooks Ltd 129 Cr. 144 159/32.355.6 20.0%17.4 %13.6 %
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.8 98.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.7 Cr. 185 245/11031.2 16.80.54 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.87 Cr. 1.48 1.48/0.5821.5 2.080.00 %1.92 %1.94 % 2.00
Industry Average40,136.67 Cr797.0597.64124.350.61%21.70%62.45%6.94

All Competitor Stocks of

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales10,19810,88111,45112,11612,70813,13013,73513,71813,15912,86413,10112,87113,006
Expenses8,3218,8879,39210,02810,82811,18511,60011,91511,82111,95011,95511,77211,441
Operating Profit1,8761,9942,0592,0881,8801,9442,1351,8031,3389141,1461,0991,564
OPM %18%18%18%17%15%15%16%13%10%7%9%9%12%
Other Income28728222332412229024730620026492380147
Interest38353455407911393120981165872
Depreciation331343362484477492498490447466443461462
Profit before tax1,7941,8981,8861,8731,4861,6641,7711,5259716156799591,178
Tax %24%29%27%18%23%22%27%26%28%18%23%31%27%
Net Profit1,3661,3411,3781,5451,1481,2991,2851,125704505524664865
EPS in Rs13.9713.8114.1015.4911.6413.2113.3211.477.105.065.236.778.71

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales6,87318,80222,62126,49429,14130,77334,74236,86837,85544,64653,29051,996
Expenses5,45114,63018,42822,23424,95626,06328,47131,36531,05936,62645,52747,489
Operating Profit1,4224,1724,1934,2604,1844,7106,2715,5036,7968,0207,7634,506
OPM %21%22%19%16%14%15%18%15%18%18%15%9%
Other Income-1412441064537751,4175341,1927881,115965927
Interest103806997129162133192174163326392
Depreciation2005226117599781,0851,1291,4461,4581,5201,9571,817
Profit before tax9783,8153,6183,8573,8534,8795,5435,0585,9537,4526,4463,224
Tax %24%20%27%22%26%22%23%23%27%24%25%26%
Net Profit1,3073,0622,6593,0272,8513,7864,2893,8974,3535,6304,8572,397
EPS in Rs25.1332.4427.3530.9228.8838.7843.7041.7645.7357.2749.6024.14
Dividend Payout %5%15%22%35%28%33%29%32%89%47%91%150%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)134.28%-13.16%13.84%-5.81%32.80%13.29%-9.14%11.70%29.34%-13.73%-50.65%
Change in YoY Net Profit Growth (%)0.00%-147.44%27.00%-19.65%38.61%-19.51%-22.43%20.84%17.63%-43.07%-36.92%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:8%
3 Years:11%
TTM:-2%
Compounded Profit Growth
10 Years:-2%
5 Years:-11%
3 Years:-19%
TTM:-9%
Stock Price CAGR
10 Years:10%
5 Years:17%
3 Years:0%
1 Year:32%
Return on Equity
10 Years:18%
5 Years:17%
3 Years:16%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital128234480436439442444436437439440441442
Reserves5,2988,94811,76814,15515,99818,40119,84121,37724,42826,44727,48426,22826,004
Borrowings1,3803637001,0911,3662,3971,9963,6702,9012,6182,7402,5372,035
Other Liabilities2,1786,3946,8996,8438,2549,19211,16611,83411,83614,91115,16213,94314,346
Total Liabilities8,98415,94019,84822,52526,05730,43133,44637,31839,60244,41645,82743,14942,827
Fixed Assets1,2452,5944,0334,3096,4607,6227,0618,8729,01814,78414,93213,90313,818
CWIP342665686293732402765011816512013311
Investments4,0991,4722,1031,2972,3964,8417,3425,84810,2384,8843,3883,2382,312
Other Assets3,60711,60713,14516,28916,82817,72818,76622,54820,22824,58327,38825,87526,686
Total Assets8,98415,94019,84822,52526,05730,43133,44637,31839,60244,41645,82743,14942,827

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +8551,5962,4483,1374,0713,5544,4324,3588,0945,2855,5726,376
Cash from Investing Activity +-622291-1,865-1,453-2,893-3,319-2,1041,081-5,433480-226-1,318
Cash from Financing Activity +65-972-829-496-1,571-269-2,251-4,466-2,987-4,667-5,078-4,767
Net Cash Flow298915-2461,188-392-3577974-3261,098267291

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.00-359.00-696.003.003.002.005.002.004.006.005.002.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days908484806777737587988880
Inventory Days
Days Payable
Cash Conversion Cycle908484806777737587988880
Working Capital Days244764696753376042434036
ROCE %19%45%32%27%23%24%25%22%23%26%22%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters35.67%35.26%35.24%35.21%35.19%35.17%35.15%35.13%35.10%35.08%35.04%35.02%
FIIs35.36%34.27%30.43%28.20%27.95%26.87%25.69%26.22%24.58%24.15%23.27%23.67%
DIIs17.22%18.05%20.73%23.61%23.73%25.68%26.86%27.03%28.91%29.42%30.66%30.90%
Government0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%
Public11.58%12.25%13.43%12.81%12.93%12.07%12.11%11.44%11.22%11.16%10.84%10.23%
Others0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
No. of Shareholders6,09,6407,31,4538,89,6069,73,2079,92,2389,36,5349,29,8278,85,5908,67,3738,48,4848,26,2847,74,997

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF11,494,6350.841462.863,170,4092024-12-21262.56%
SBI S&P BSE Sensex ETF8,141,2140.961036.053,170,4092024-12-21156.79%
ICICI Prudential Bluechip Fund6,467,0881.72823.033,170,4092024-12-21103.98%
Tata Digital India Fund6,170,9338.47785.343,170,4092024-12-2194.64%
ICICI Prudential Technology Fund5,966,6036.4759.343,170,4092024-12-2188.2%
HDFC Flexi Cap Fund - Regular Plan4,700,0001.3598.153,170,4092024-12-2148.25%
SBI Balanced Advantage Fund4,496,0872.16572.193,170,4092024-12-2141.81%
SBI Long Term Equity Fund3,180,7412.16404.83,170,4092024-12-210.33%
UTI Nifty 50 ETF3,170,4090.84403.483,170,4092024-12-210%
UTI S&P BSE Sensex ETF2,775,4130.96353.23,170,4092024-12-21-12.46%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)26.6654.7663.3250.6446.21
Diluted EPS (Rs.)26.5854.7662.8150.1945.85
Cash EPS (Rs.)47.6380.4581.4566.4761.37
Book Value[Excl.RevalReserv]/Share (Rs.)307.56322.65311.99288.78254.77
Book Value[Incl.RevalReserv]/Share (Rs.)307.56322.65311.99288.78254.77
Revenue From Operations / Share (Rs.)589.12605.57508.73433.12422.99
PBDIT / Share (Rs.)61.45102.20104.0686.7776.88
PBIT / Share (Rs.)40.8677.2786.7370.0960.29
PBT / Share (Rs.)36.4173.5784.8868.1058.09
Net Profit / Share (Rs.)27.0455.5264.1249.7944.78
NP After MI And SOA / Share (Rs.)26.7154.9063.4250.6646.27
PBDIT Margin (%)10.4316.8720.4520.0318.17
PBIT Margin (%)6.9312.7617.0416.1814.25
PBT Margin (%)6.1812.1416.6815.7213.73
Net Profit Margin (%)4.589.1612.6011.4910.58
NP After MI And SOA Margin (%)4.539.0612.4611.6910.93
Return on Networth / Equity (%)8.8417.3020.7017.8118.48
Return on Capital Employeed (%)11.7021.5123.5120.8319.88
Return On Assets (%)5.4210.4612.4011.1510.79
Long Term Debt / Equity (X)0.000.000.010.010.01
Total Debt / Equity (X)0.050.050.050.060.11
Asset Turnover Ratio (%)1.161.170.920.830.91
Current Ratio (X)1.861.681.962.462.12
Quick Ratio (X)1.851.681.952.452.12
Dividend Payout Ratio (NP) (%)166.1288.2471.5239.7261.78
Dividend Payout Ratio (CP) (%)93.8260.6856.1829.8845.47
Earning Retention Ratio (%)-66.1211.7628.4860.2838.22
Cash Earning Retention Ratio (%)6.1839.3243.8270.1254.53
Interest Coverage Ratio (X)13.8327.6256.1643.5834.92
Interest Coverage Ratio (Post Tax) (X)7.0816.0135.6126.0121.34
Enterprise Value (Cr.)107633.2094756.50129681.1785841.3548914.24
EV / Net Operating Revenue (X)2.071.782.902.271.33
EV / EBITDA (X)19.8510.5414.2011.327.30
MarketCap / Net Operating Revenue (X)2.121.822.952.291.34
Retention Ratios (%)-66.1211.7528.4760.2738.21
Price / BV (X)4.143.474.893.482.26
Price / Net Operating Revenue (X)2.121.822.952.291.34
EarningsYield0.020.040.040.050.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 1,202.20

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Overvalued by 28.70% compared to the current share price 1,686.00

Intrinsic Value of as of December 22, 2024 is: 1,077.39

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Overvalued by 36.10% compared to the current share price 1,686.00

Last 5 Year EPS CAGR: -10.38%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.00%, which is a positive sign.
  2. The company has higher reserves (18,952.08 cr) compared to borrowings (1,984.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (32.17 cr) and profit (85.42 cr) over the years.
  1. The stock has a high average Working Capital Days of 48.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 81.92, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 4.58%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.7% (Industry Average ROCE: 20.73%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.84% (Industry Average ROE: 57.44%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.08
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.85
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 50.4 (Industry average Stock P/E: 77.59)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.05
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Tech Mahindra Ltd. is a Public Limited Listed company incorporated on 24/10/1986 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L64200MH1986PLC041370 and registration number is 041370. Currently Company is involved in the business activities of Other information technology and computer service activities n.e.c. Company’s Total Operating Revenue is Rs. 34726.10 Cr. and Equity Capital is Rs. 485.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareGateway Building, Apollo Bunder, Mumbai Maharashtra 400001investor.relations@techmahindra.com
http://www.techmahindra.com
Management
NamePosition Held
Mr. Anand G MahindraChairman
Mr. Mohit JoshiManaging Director & CEO
Dr. Anish ShahNon Executive Director
Ms. Penelope FowlerIndependent Director
Mrs. M Rajyalakshmi RaoIndependent Director
Dr. Mukti KhaireIndependent Director
Mr. Haigreve KhaitanIndependent Director
Ms. Shikha SharmaIndependent Director
Mr. T N ManoharanLead Independent Director
Mr. Amarjyoti BaruaNon Executive Director
Mr. Neelam DhawanIndependent Director
Mr. Tarun BajajAdditional Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹1202.20, which is 28.70% lower than the current market price of ₹1,686.00. The stock has a market capitalization of 1,65,013 Cr. and recorded a high/low of 1,808/1,163 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹26,004 Cr and total liabilities of ₹42,827 Cr.

What is the Market Cap of ?

The Market Cap of is 1,65,013 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 1,686.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 1,808/1,163.

What is the Stock P/E of ?

The Stock P/E of is 50.4.

What is the Book Value of ?

The Book Value of is 270.

What is the Dividend Yield of ?

The Dividend Yield of is 2.37 %.

What is the ROCE of ?

The ROCE of is 11.9 %.

What is the ROE of ?

The ROE of is 8.63 %.

What is the Face Value of ?

The Face Value of is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE