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Last Updated on: 13 June, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Tech Mahindra Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: June 13, 2025, 8:22 pm

Market Cap 1,62,509 Cr.
Current Price 1,659
High / Low 1,808/1,209
Stock P/E38.2
Book Value 279
Dividend Yield2.71 %
ROCE20.1 %
ROE15.7 %
Face Value 5.00
PEG Ratio-37.20

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 0.52/0.33 1.120.00 %2.21 %2.23 % 1.00
Mudunuru Ltd 24.3 Cr. 7.79 14.4/5.33 0.250.00 %27.6 %90.7 % 2.00
Naapbooks Ltd 155 Cr. 145 159/54.034.7 33.20.00 %23.6 %17.1 % 10.0
IB Infotech Enterprises Ltd 23.3 Cr. 182 245/13231.5 19.00.55 %38.5 %35.4 % 10.0
Hit Kit Global Solutions Ltd 5.48 Cr. 1.18 1.62/1.1827.4 2.520.00 %2.14 %2.15 % 2.00
Industry Average20,787.27 Cr571.5493.21118.930.47%15.28%14.77%6.84

All Competitor Stocks of Tech Mahindra Ltd

Quarterly Result

MetricMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025
Sales 12,11612,70813,13013,73513,71813,15912,86413,10112,87113,00613,31313,28613,384
Expenses 10,02810,82811,18511,60011,91511,82111,95011,95511,77211,44111,56311,47711,545
Operating Profit 2,0881,8801,9442,1351,8031,3389141,1461,0991,5641,7501,8091,839
OPM % 17%15%15%16%13%10%7%9%9%12%13%14%14%
Other Income 3241222902473062002649238014752223173
Interest 55407911393120981165872897685
Depreciation 484477492498490447466443461462470459462
Profit before tax 1,8731,4861,6641,7711,5259716156799591,1781,7141,2971,464
Tax % 18%23%22%27%26%28%18%23%31%27%27%24%22%
Net Profit 1,5451,1481,2991,2851,1257045055246648651,2589891,142
EPS in Rs 15.4911.6413.2113.3211.477.105.065.236.778.7112.7810.0511.92

Last Updated: May 31, 2025, 7:34 am

Below is a detailed analysis of the quarterly data for Tech Mahindra Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

  • For Sales, as of Mar 2025, the value is 13,384.00 Cr.. The value appears strong and on an upward trend. It has increased from 13,286.00 Cr. (Dec 2024) to 13,384.00 Cr., marking an increase of 98.00 Cr..
  • For Expenses, as of Mar 2025, the value is 11,545.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 11,477.00 Cr. (Dec 2024) to 11,545.00 Cr., marking an increase of 68.00 Cr..
  • For Operating Profit, as of Mar 2025, the value is 1,839.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,809.00 Cr. (Dec 2024) to 1,839.00 Cr., marking an increase of 30.00 Cr..
  • For OPM %, as of Mar 2025, the value is 14.00%. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 14.00%.
  • For Other Income, as of Mar 2025, the value is 173.00 Cr.. The value appears strong and on an upward trend. It has increased from 23.00 Cr. (Dec 2024) to 173.00 Cr., marking an increase of 150.00 Cr..
  • For Interest, as of Mar 2025, the value is 85.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 76.00 Cr. (Dec 2024) to 85.00 Cr., marking an increase of 9.00 Cr..
  • For Depreciation, as of Mar 2025, the value is 462.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 459.00 Cr. (Dec 2024) to 462.00 Cr., marking an increase of 3.00 Cr..
  • For Profit before tax, as of Mar 2025, the value is 1,464.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,297.00 Cr. (Dec 2024) to 1,464.00 Cr., marking an increase of 167.00 Cr..
  • For Tax %, as of Mar 2025, the value is 22.00%. The value appears to be improving (decreasing) as expected. It has decreased from 24.00% (Dec 2024) to 22.00%, marking a decrease of 2.00%.
  • For Net Profit, as of Mar 2025, the value is 1,142.00 Cr.. The value appears strong and on an upward trend. It has increased from 989.00 Cr. (Dec 2024) to 1,142.00 Cr., marking an increase of 153.00 Cr..
  • For EPS in Rs, as of Mar 2025, the value is 11.92. The value appears strong and on an upward trend. It has increased from 10.05 (Dec 2024) to 11.92, marking an increase of 1.87.

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: May 15, 2025, 5:03 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Sales 18,80222,62126,49429,14130,77334,74236,86837,85544,64653,29051,99652,988
Expenses 14,63018,42822,23424,95626,06328,47131,36531,05936,62645,52747,48946,024
Operating Profit 4,1724,1934,2604,1844,7106,2715,5036,7968,0207,7634,5066,964
OPM % 22%19%16%14%15%18%15%18%18%15%9%13%
Other Income 2441064537751,4175341,1927881,115965927864
Interest 806997129162133192174163326392322
Depreciation 5226117599781,0851,1291,4461,4581,5201,9571,8171,853
Profit before tax 3,8153,6183,8573,8534,8795,5435,0585,9537,4526,4463,2245,653
Tax % 20%27%22%26%22%23%23%27%24%25%26%25%
Net Profit 3,0622,6593,0272,8513,7864,2893,8974,3535,6304,8572,3974,253
EPS in Rs 32.4427.3530.9228.8838.7843.7041.7645.7357.2749.6024.1443.43
Dividend Payout % 15%22%35%28%33%29%32%89%47%91%150%94%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)-13.16%13.84%-5.81%32.80%13.29%-9.14%11.70%29.34%-13.73%-50.65%77.43%
Change in YoY Net Profit Growth (%)0.00%27.00%-19.65%38.61%-19.51%-22.43%20.84%17.63%-43.07%-36.92%128.08%

Tech Mahindra Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:8%
3 Years:6%
TTM:2%
Compounded Profit Growth
10 Years:5%
5 Years:2%
3 Years:-9%
TTM:80%
Stock Price CAGR
10 Years:12%
5 Years:25%
3 Years:17%
1 Year:19%
Return on Equity
10 Years:18%
5 Years:16%
3 Years:14%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: May 13, 2025, 2:36 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Equity Capital 234480436439442444436437439440441442
Reserves 8,94811,76814,15515,99818,40119,84121,37724,42826,44727,48426,22826,919
Borrowings 3637001,0911,3662,3971,9963,6702,9012,6182,7402,5372,025
Other Liabilities 6,3946,8996,8438,2549,19211,16611,83411,83614,91115,16213,94315,108
Total Liabilities 15,94019,84822,52526,05730,43133,44637,31839,60244,41645,82743,14944,494
Fixed Assets 2,5944,0334,3096,4607,6227,0618,8729,01814,78414,93213,90313,982
CWIP 2665686293732402765011816512013321
Investments 1,4722,1031,2972,3964,8417,3425,84810,2384,8843,3883,2383,182
Other Assets 11,60713,14516,28916,82817,72818,76622,54820,22824,58327,38825,87527,310
Total Assets 15,94019,84822,52526,05730,43133,44637,31839,60244,41645,82743,14944,494

Below is a detailed analysis of the balance sheet data for Tech Mahindra Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

  • For Equity Capital, as of Mar 2025, 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 Mar 2025, the value is 26,919.00 Cr.. The value appears strong and on an upward trend. It has increased from 26,228.00 Cr. (Mar 2024) to 26,919.00 Cr., marking an increase of 691.00 Cr..
  • For Borrowings, as of Mar 2025, the value is 2,025.00 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 2,025.00 Cr., marking a decrease of 512.00 Cr..
  • For Other Liabilities, as of Mar 2025, the value is 15,108.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 13,943.00 Cr. (Mar 2024) to 15,108.00 Cr., marking an increase of 1,165.00 Cr..
  • For Total Liabilities, as of Mar 2025, the value is 44,494.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 43,149.00 Cr. (Mar 2024) to 44,494.00 Cr., marking an increase of 1,345.00 Cr..
  • For Fixed Assets, as of Mar 2025, the value is 13,982.00 Cr.. The value appears strong and on an upward trend. It has increased from 13,903.00 Cr. (Mar 2024) to 13,982.00 Cr., marking an increase of 79.00 Cr..
  • For CWIP, as of Mar 2025, the value is 21.00 Cr.. The value appears to be declining and may need further review. It has decreased from 133.00 Cr. (Mar 2024) to 21.00 Cr., marking a decrease of 112.00 Cr..
  • For Investments, as of Mar 2025, the value is 3,182.00 Cr.. The value appears to be declining and may need further review. It has decreased from 3,238.00 Cr. (Mar 2024) to 3,182.00 Cr., marking a decrease of 56.00 Cr..
  • For Other Assets, as of Mar 2025, the value is 27,310.00 Cr.. The value appears strong and on an upward trend. It has increased from 25,875.00 Cr. (Mar 2024) to 27,310.00 Cr., marking an increase of 1,435.00 Cr..
  • For Total Assets, as of Mar 2025, the value is 44,494.00 Cr.. The value appears strong and on an upward trend. It has increased from 43,149.00 Cr. (Mar 2024) to 44,494.00 Cr., marking an increase of 1,345.00 Cr..

Notably, the Reserves (26,919.00 Cr.) exceed the Borrowings (2,025.00 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

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity +1,5962,4483,1374,0713,5544,4324,3588,0945,2855,5726,3765,786
Cash from Investing Activity +291-1,865-1,453-2,893-3,319-2,1041,081-5,433480-226-1,318-23
Cash from Financing Activity +-972-829-496-1,571-269-2,251-4,466-2,987-4,667-5,078-4,767-5,799
Net Cash Flow915-2461,188-392-3577974-3261,098267291-37

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-359.00-696.003.003.002.005.002.004.006.005.002.004.00

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 ETF 11,494,635 0.84 1462.8611,494,6352025-04-22 17:25:180%
SBI S&P BSE Sensex ETF 8,141,214 0.96 1036.058,141,2142025-04-22 17:25:180%
ICICI Prudential Bluechip Fund 6,467,088 1.72 823.036,467,0882025-04-22 17:25:180%
Tata Digital India Fund 6,170,933 8.47 785.346,170,9332025-04-22 17:25:180%
ICICI Prudential Technology Fund 5,966,603 6.4 759.345,966,6032025-04-22 17:25:180%
HDFC Flexi Cap Fund - Regular Plan 4,700,000 1.3 598.154,700,0002025-04-22 17:25:180%
SBI Balanced Advantage Fund 4,496,087 2.16 572.194,496,0872025-04-22 17:25:180%
SBI Long Term Equity Fund 3,180,741 2.16 404.83,180,7412025-04-22 17:25:180%
UTI Nifty 50 ETF 3,170,409 0.84 403.483,170,4092025-04-22 17:25:180%
UTI S&P BSE Sensex ETF 2,775,413 0.96 353.22,775,4132025-04-22 05:07:380%

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 June 13, 2025 is: 1,374.90

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 June 13, 2025, Tech Mahindra Ltd is Overvalued by 17.12% compared to the current share price 1,659.00

Intrinsic Value of Tech Mahindra Ltd as of June 13, 2025 is: 1,360.78

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 June 13, 2025, Tech Mahindra Ltd is Overvalued by 17.98% compared to the current share price 1,659.00

Last 5 Year EPS CAGR: -1.03%

*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 (20,166.17 cr) compared to borrowings (2,033.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (36.00 cr) and profit (4.33 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: 15.28%)
      • 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: 14.77%)
      • 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: 38.2 (Industry average Stock P/E: 93.21)
      • 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. 44617.20 Cr. and Equity Capital is Rs. 489.50 Cr. for the Year ended 31/03/2025.
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 intrinsic value of Tech Mahindra Ltd?

Tech Mahindra Ltd's intrinsic value (as of 13 June 2025) is ₹1374.90 — 17.12% lower the current market price of 1,659.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 1,62,509 Cr. market cap, FY2025-2026 high/low of ₹1,808/1,209, reserves of 26,919 Cr, and liabilities of 44,494 Cr.

What is the Market Cap of Tech Mahindra Ltd?

The Market Cap of Tech Mahindra Ltd is 1,62,509 Cr..

What is the current Stock Price of Tech Mahindra Ltd as on 13 June 2025?

The current stock price of Tech Mahindra Ltd as on 13 June 2025 is 1,659.

What is the High / Low of Tech Mahindra Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Tech Mahindra Ltd stocks is ₹1,808/1,209.

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

The Stock P/E of Tech Mahindra Ltd is 38.2.

What is the Book Value of Tech Mahindra Ltd?

The Book Value of Tech Mahindra Ltd is 279.

What is the Dividend Yield of Tech Mahindra Ltd?

The Dividend Yield of Tech Mahindra Ltd is 2.71 %.

What is the ROCE of Tech Mahindra Ltd?

The ROCE of Tech Mahindra Ltd is 20.1 %.

What is the ROE of Tech Mahindra Ltd?

The ROE of Tech Mahindra Ltd is 15.7 %.

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