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Last Updated on: 12 March, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Tech Mahindra Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 8, 2025, 10:13 am

Market Cap 1,46,089 Cr.
Current Price 1,492
High / Low 1,808/1,163
Stock P/E39.0
Book Value 270
Dividend Yield2.68 %
ROCE11.9 %
ROE8.63 %
Face Value 5.00
PEG Ratio-11.21

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

View Share Price Target for Tech Mahindra Ltd

Competitors of Tech Mahindra Ltd

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Visesh Infotecnics Ltd 125 Cr. 0.33 0.57/0.33 1.140.00 %0.88 %0.82 % 1.00
Mudunuru Ltd 22.6 Cr. 7.23 15.6/5.41 0.340.00 %72.9 %374 % 2.00
Naapbooks Ltd 94.7 Cr. 105 159/54.040.6 20.00.00 %17.4 %13.6 % 10.0
IB Infotech Enterprises Ltd 21.1 Cr. 165 245/11327.1 16.80.61 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 7.19 Cr. 1.55 1.55/0.9120.0 2.080.00 %1.92 %1.94 % 2.00
Industry Average19,195.34 Cr566.7379.98121.670.84%21.53%64.55%6.83

All Competitor Stocks of Tech Mahindra Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 11,45112,11612,70813,13013,73513,71813,15912,86413,10112,87113,00613,31313,286
Expenses 9,39210,02810,82811,18511,60011,91511,82111,95011,95511,77211,44111,56311,477
Operating Profit 2,0592,0881,8801,9442,1351,8031,3389141,1461,0991,5641,7501,809
OPM % 18%17%15%15%16%13%10%7%9%9%12%13%14%
Other Income 2233241222902473062002649238014752223
Interest 34554079113931209811658728976
Depreciation 362484477492498490447466443461462470459
Profit before tax 1,8861,8731,4861,6641,7711,5259716156799591,1781,7141,297
Tax % 27%18%23%22%27%26%28%18%23%31%27%27%24%
Net Profit 1,3781,5451,1481,2991,2851,1257045055246648651,258989
EPS in Rs 14.1015.4911.6413.2113.3211.477.105.065.236.778.7112.7810.05

Last Updated: February 28, 2025, 4:44 pm

Below is a detailed analysis of the quarterly data for Tech Mahindra Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is ₹13,286.00 Cr.. The value appears to be declining and may need further review. It has decreased from 13,313.00 Cr. (Sep 2024) to ₹13,286.00 Cr., marking a decrease of 27.00 Cr..
  • For Expenses, as of Dec 2024, the value is ₹11,477.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 11,563.00 Cr. (Sep 2024) to ₹11,477.00 Cr., marking a decrease of 86.00 Cr..
  • For Operating Profit, as of Dec 2024, the value is ₹1,809.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,750.00 Cr. (Sep 2024) to ₹1,809.00 Cr., marking an increase of ₹59.00 Cr..
  • For OPM %, as of Dec 2024, the value is 14.00%. The value appears strong and on an upward trend. It has increased from 13.00% (Sep 2024) to 14.00%, marking an increase of 1.00%.
  • For Other Income, as of Dec 2024, the value is ₹23.00 Cr.. The value appears to be declining and may need further review. It has decreased from 522.00 Cr. (Sep 2024) to ₹23.00 Cr., marking a decrease of 499.00 Cr..
  • For Interest, as of Dec 2024, the value is ₹76.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 89.00 Cr. (Sep 2024) to ₹76.00 Cr., marking a decrease of 13.00 Cr..
  • For Depreciation, as of Dec 2024, the value is ₹459.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 470.00 Cr. (Sep 2024) to ₹459.00 Cr., marking a decrease of 11.00 Cr..
  • For Profit before tax, as of Dec 2024, the value is ₹1,297.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,714.00 Cr. (Sep 2024) to ₹1,297.00 Cr., marking a decrease of 417.00 Cr..
  • For Tax %, as of Dec 2024, the value is 24.00%. The value appears to be improving (decreasing) as expected. It has decreased from 27.00% (Sep 2024) to 24.00%, marking a decrease of 3.00%.
  • For Net Profit, as of Dec 2024, the value is ₹989.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,258.00 Cr. (Sep 2024) to ₹989.00 Cr., marking a decrease of 269.00 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 10.05. The value appears to be declining and may need further review. It has decreased from ₹12.78 (Sep 2024) to 10.05, marking a decrease of ₹2.73.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 2:39 pm

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 6,87318,80222,62126,49429,14130,77334,74236,86837,85544,64653,29051,99652,476
Expenses 5,45114,63018,42822,23424,95626,06328,47131,36531,05936,62645,52747,48946,253
Operating Profit 1,4224,1724,1934,2604,1844,7106,2715,5036,7968,0207,7634,5066,223
OPM % 21%22%19%16%14%15%18%15%18%18%15%9%12%
Other Income -1412441064537751,4175341,1927881,1159659271,072
Interest 103806997129162133192174163326392295
Depreciation 2005226117599781,0851,1291,4461,4581,5201,9571,8171,852
Profit before tax 9783,8153,6183,8573,8534,8795,5435,0585,9537,4526,4463,2245,148
Tax % 24%20%27%22%26%22%23%23%27%24%25%26%
Net Profit 1,3073,0622,6593,0272,8513,7864,2893,8974,3535,6304,8572,3973,775
EPS in Rs 25.1332.4427.3530.9228.8838.7843.7041.7645.7357.2749.6024.1438.31
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%

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

No data available for the compounded sales growth chart.

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 Capital 128234480436439442444436437439440441442
Reserves 5,2988,94811,76814,15515,99818,40119,84121,37724,42826,44727,48426,22826,004
Borrowings 1,3803637001,0911,3662,3971,9963,6702,9012,6182,7402,5372,035
Other Liabilities 2,1786,3946,8996,8438,2549,19211,16611,83411,83614,91115,16213,94314,346
Total Liabilities 8,98415,94019,84822,52526,05730,43133,44637,31839,60244,41645,82743,14942,827
Fixed Assets 1,2452,5944,0334,3096,4607,6227,0618,8729,01814,78414,93213,90313,818
CWIP 342665686293732402765011816512013311
Investments 4,0991,4722,1031,2972,3964,8417,3425,84810,2384,8843,3883,2382,312
Other Assets 3,60711,60713,14516,28916,82817,72818,76622,54820,22824,58327,38825,87526,686
Total Assets 8,98415,94019,84822,52526,05730,43133,44637,31839,60244,41645,82743,14942,827

Below is a detailed analysis of the balance sheet data for Tech Mahindra Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹442.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹441.00 Cr. (Mar 2024) to ₹442.00 Cr., marking an increase of 1.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹26,004.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹26,228.00 Cr. (Mar 2024) to ₹26,004.00 Cr., marking a decrease of 224.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹2,035.00 Cr.. The value appears to be improving (decreasing). Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has decreased from ₹2,537.00 Cr. (Mar 2024) to ₹2,035.00 Cr., marking a decrease of 502.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹14,346.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹13,943.00 Cr. (Mar 2024) to ₹14,346.00 Cr., marking an increase of 403.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹42,827.00 Cr.. The value appears to be improving (decreasing). It has decreased from ₹43,149.00 Cr. (Mar 2024) to ₹42,827.00 Cr., marking a decrease of 322.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹13,818.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹13,903.00 Cr. (Mar 2024) to ₹13,818.00 Cr., marking a decrease of 85.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹11.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹133.00 Cr. (Mar 2024) to ₹11.00 Cr., marking a decrease of 122.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹2,312.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹3,238.00 Cr. (Mar 2024) to ₹2,312.00 Cr., marking a decrease of 926.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹26,686.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹25,875.00 Cr. (Mar 2024) to ₹26,686.00 Cr., marking an increase of 811.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹42,827.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹43,149.00 Cr. (Mar 2024) to ₹42,827.00 Cr., marking a decrease of 322.00 Cr..

Notably, the Reserves (₹26,004.00 Cr.) exceed the Borrowings (2,035.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

No data available for this post.

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

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters35.26%35.24%35.21%35.19%35.17%35.15%35.13%35.10%35.08%35.04%35.02%35.01%
FIIs34.27%30.43%28.20%27.95%26.87%25.69%26.22%24.58%24.15%23.27%23.67%24.19%
DIIs18.05%20.73%23.61%23.73%25.68%26.86%27.03%28.91%29.42%30.66%30.90%30.73%
Government0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%0.17%
Public12.25%13.43%12.81%12.93%12.07%12.11%11.44%11.22%11.16%10.84%10.23%9.88%
No. of Shareholders7,31,4538,89,6069,73,2079,92,2389,36,5349,29,8278,85,5908,67,3738,48,4848,26,2847,74,9977,61,383

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 ETF11,494,6350.841462.863,180,7412025-03-11261.38%
SBI S&P BSE Sensex ETF8,141,2140.961036.053,180,7412025-03-11155.95%
ICICI Prudential Bluechip Fund6,467,0881.72823.033,180,7412025-03-11103.32%
Tata Digital India Fund6,170,9338.47785.343,180,7412025-03-1194.01%
ICICI Prudential Technology Fund5,966,6036.4759.343,180,7412025-03-1187.59%
HDFC Flexi Cap Fund - Regular Plan4,700,0001.3598.153,180,7412025-03-1147.76%
SBI Balanced Advantage Fund4,496,0872.16572.193,180,7412025-03-1141.35%
SBI Long Term Equity Fund3,180,7412.16404.83,180,7412025-03-110%
UTI Nifty 50 ETF3,170,4090.84403.483,180,7412025-03-11-0.32%
UTI S&P BSE Sensex ETF2,775,4130.96353.23,180,7412025-03-11-12.74%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 5.005.005.005.005.00
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
EarningsYield 0.020.040.040.050.08

After reviewing the key financial ratios for Tech Mahindra Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 5.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 5.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 26.66. This value is within the healthy range. It has decreased from 54.76 (Mar 23) to 26.66, marking a decrease of 28.10.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 26.58. This value is within the healthy range. It has decreased from 54.76 (Mar 23) to 26.58, marking a decrease of 28.18.
  • For Cash EPS (Rs.), as of Mar 24, the value is 47.63. This value is within the healthy range. It has decreased from 80.45 (Mar 23) to 47.63, marking a decrease of 32.82.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 307.56. It has decreased from 322.65 (Mar 23) to 307.56, marking a decrease of 15.09.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 307.56. It has decreased from 322.65 (Mar 23) to 307.56, marking a decrease of 15.09.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 589.12. It has decreased from 605.57 (Mar 23) to 589.12, marking a decrease of 16.45.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 61.45. This value is within the healthy range. It has decreased from 102.20 (Mar 23) to 61.45, marking a decrease of 40.75.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 40.86. This value is within the healthy range. It has decreased from 77.27 (Mar 23) to 40.86, marking a decrease of 36.41.
  • For PBT / Share (Rs.), as of Mar 24, the value is 36.41. This value is within the healthy range. It has decreased from 73.57 (Mar 23) to 36.41, marking a decrease of 37.16.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 27.04. This value is within the healthy range. It has decreased from 55.52 (Mar 23) to 27.04, marking a decrease of 28.48.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 26.71. This value is within the healthy range. It has decreased from 54.90 (Mar 23) to 26.71, marking a decrease of 28.19.
  • For PBDIT Margin (%), as of Mar 24, the value is 10.43. This value is within the healthy range. It has decreased from 16.87 (Mar 23) to 10.43, marking a decrease of 6.44.
  • For PBIT Margin (%), as of Mar 24, the value is 6.93. This value is below the healthy minimum of 10. It has decreased from 12.76 (Mar 23) to 6.93, marking a decrease of 5.83.
  • For PBT Margin (%), as of Mar 24, the value is 6.18. This value is below the healthy minimum of 10. It has decreased from 12.14 (Mar 23) to 6.18, marking a decrease of 5.96.
  • For Net Profit Margin (%), as of Mar 24, the value is 4.58. This value is below the healthy minimum of 5. It has decreased from 9.16 (Mar 23) to 4.58, marking a decrease of 4.58.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 4.53. This value is below the healthy minimum of 8. It has decreased from 9.06 (Mar 23) to 4.53, marking a decrease of 4.53.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 8.84. This value is below the healthy minimum of 15. It has decreased from 17.30 (Mar 23) to 8.84, marking a decrease of 8.46.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 11.70. This value is within the healthy range. It has decreased from 21.51 (Mar 23) to 11.70, marking a decrease of 9.81.
  • For Return On Assets (%), as of Mar 24, the value is 5.42. This value is within the healthy range. It has decreased from 10.46 (Mar 23) to 5.42, marking a decrease of 5.04.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 0.2. There is no change compared to the previous period (Mar 23) which recorded 0.00.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.05. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 0.05.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 1.16. It has decreased from 1.17 (Mar 23) to 1.16, marking a decrease of 0.01.
  • For Current Ratio (X), as of Mar 24, the value is 1.86. This value is within the healthy range. It has increased from 1.68 (Mar 23) to 1.86, marking an increase of 0.18.
  • For Quick Ratio (X), as of Mar 24, the value is 1.85. This value is within the healthy range. It has increased from 1.68 (Mar 23) to 1.85, marking an increase of 0.17.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 166.12. This value exceeds the healthy maximum of 50. It has increased from 88.24 (Mar 23) to 166.12, marking an increase of 77.88.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 93.82. This value exceeds the healthy maximum of 50. It has increased from 60.68 (Mar 23) to 93.82, marking an increase of 33.14.
  • For Earning Retention Ratio (%), as of Mar 24, the value is -66.12. This value is below the healthy minimum of 40. It has decreased from 11.76 (Mar 23) to -66.12, marking a decrease of 77.88.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 6.18. This value is below the healthy minimum of 40. It has decreased from 39.32 (Mar 23) to 6.18, marking a decrease of 33.14.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 13.83. This value is within the healthy range. It has decreased from 27.62 (Mar 23) to 13.83, marking a decrease of 13.79.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 7.08. This value is within the healthy range. It has decreased from 16.01 (Mar 23) to 7.08, marking a decrease of 8.93.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 107,633.20. It has increased from 94,756.50 (Mar 23) to 107,633.20, marking an increase of 12,876.70.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 2.07. This value is within the healthy range. It has increased from 1.78 (Mar 23) to 2.07, marking an increase of 0.29.
  • For EV / EBITDA (X), as of Mar 24, the value is 19.85. This value exceeds the healthy maximum of 15. It has increased from 10.54 (Mar 23) to 19.85, marking an increase of 9.31.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 2.12. This value is within the healthy range. It has increased from 1.82 (Mar 23) to 2.12, marking an increase of 0.30.
  • For Retention Ratios (%), as of Mar 24, the value is -66.12. This value is below the healthy minimum of 30. It has decreased from 11.75 (Mar 23) to -66.12, marking a decrease of 77.87.
  • For Price / BV (X), as of Mar 24, the value is 4.14. This value exceeds the healthy maximum of 3. It has increased from 3.47 (Mar 23) to 4.14, marking an increase of 0.67.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 2.12. This value is within the healthy range. It has increased from 1.82 (Mar 23) to 2.12, marking an increase of 0.30.
  • For EarningsYield, as of Mar 24, the value is 0.02. This value is below the healthy minimum of 5. It has decreased from 0.04 (Mar 23) to 0.02, marking a decrease of 0.02.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Tech Mahindra Ltd as of March 12, 2025 is: ₹746.47

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 March 12, 2025, Tech Mahindra Ltd is Overvalued by 49.97% compared to the current share price 1,492.00

Intrinsic Value of Tech Mahindra Ltd as of March 12, 2025 is: 720.50

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 March 12, 2025, Tech Mahindra Ltd is Overvalued by 51.71% compared to the current share price 1,492.00

Last 5 Year EPS CAGR: -3.48%

*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 (33.69 cr) and profit (79.23 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.

Stock Analysis

  • 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 Tech Mahindra Ltd:
    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: 21.53%)
      • 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: 64.55%)
      • 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: 39 (Industry average Stock P/E: 79.98)
      • 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. 42099.30 Cr. and Equity Capital is Rs. 488.40 Cr. for the Year ended 31/03/2024.
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 Tech Mahindra Ltd?

The latest intrinsic value of Tech Mahindra Ltd as on 10 March 2025 is ₹746.47, which is 49.97% lower than the current market price of 1,492.00, indicating the stock is overvalued by 49.97%. The intrinsic value of Tech Mahindra Ltd is calculated using PE ratio method. The stock has a market capitalization of ₹1,46,089 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 Tech Mahindra Ltd?

The Market Cap of Tech Mahindra Ltd is 1,46,089 Cr..

What is the current Stock Price of Tech Mahindra Ltd as on 10 March 2025?

The current stock price of Tech Mahindra Ltd as on 10 March 2025 is ₹1,492.

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

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

What is the Stock P/E of Tech Mahindra Ltd?

The Stock P/E of Tech Mahindra Ltd is 39.0.

What is the Book Value of Tech Mahindra Ltd?

The Book Value of Tech Mahindra Ltd is 270.

What is the Dividend Yield of Tech Mahindra Ltd?

The Dividend Yield of Tech Mahindra Ltd is 2.68 %.

What is the ROCE of Tech Mahindra Ltd?

The ROCE of Tech Mahindra Ltd is 11.9 %.

What is the ROE of Tech Mahindra Ltd?

The ROE of Tech Mahindra Ltd is 8.63 %.

What is the Face Value of Tech Mahindra Ltd?

The Face Value of Tech Mahindra Ltd is 5.00.

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 Tech Mahindra Ltd. 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