Financials Tech Mahindra Limited

Equities

TECHM

INE669C01036

IT Services & Consulting

Market Closed - NSE India S.E. Other stock markets 12:43:49 26/04/2024 BST			5-day change	1st Jan Change
1,279 ^INR	+7.43%		+7.13%	+0.48%

04-26	Weak March Quarter Earnings Weigh Down Indian Equities on Friday	MT
04-26	Jefferies Adjusts Tech Mahindra's Price Target to INR1,065 From INR1,080, Keeps at Underperform	MT

Valuation

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	688,182	491,823	866,483	1,315,817	969,531	1,128,581	-	-
Enterprise Value (EV) ¹	612,743	428,499	758,130	1,247,530	914,934	1,041,638	1,069,218	1,050,865
P/E ratio	16.3 x	12.3 x	19.8 x	23.9 x	20.2 x	47 x	26.1 x	19.6 x
Yield	1.8%	2.65%	4.54%	3%	4.54%	2.83%	3.58%	4.08%
Capitalization / Revenue	1.98 x	1.33 x	2.29 x	2.95 x	1.82 x	2.12 x	2.11 x	1.94 x
EV / Revenue	1.76 x	1.16 x	2 x	2.79 x	1.72 x	2 x	2 x	1.81 x
EV / EBITDA	9.67 x	7.48 x	11.1 x	15.6 x	11.4 x	21 x	15.1 x	11.6 x
EV / FCF	16.9 x	12.2 x	10.2 x	28.8 x	20.1 x	18.6 x	25.2 x	19.4 x
FCF Yield	5.92%	8.2%	9.8%	3.47%	4.98%	5.36%	3.97%	5.15%
Price to Book	3.39 x	2.26 x	3.48 x	4.89 x	3.49 x	4.15 x	4.16 x	4.01 x
Nbr of stocks (in thousands)	886,947	869,714	873,955	877,533	879,912	882,566	-	-
Reference price ²	775.9	565.5	991.4	1,499	1,102	1,279	1,279	1,279
Announcement Date	21/05/19	30/04/20	26/04/21	13/05/22	27/04/23	25/04/24	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	347,421	368,677	378,551	446,460	532,902	519,955	535,524	582,082
EBITDA ¹	63,369	57,261	68,470	80,200	80,288	49,645	70,957	90,922
EBIT ¹	52,077	42,803	53,893	64,996	60,721	31,474	52,715	70,961
Operating Margin	14.99%	11.61%	14.24%	14.56%	11.39%	6.05%	9.84%	12.19%
Earnings before Tax (EBT) ¹	55,432	50,578	59,529	74,521	64,455	32,244	57,352	76,993
Net income ¹	42,976	40,330	44,280	55,661	48,313	23,578	43,209	57,429
Net margin	12.37%	10.94%	11.7%	12.47%	9.07%	4.53%	8.07%	9.87%
EPS ²	47.72	45.85	50.19	62.81	54.54	26.58	48.93	65.10
Free Cash Flow ¹	36,274	35,135	74,278	43,269	45,568	55,853	42,472	54,094
FCF margin	10.44%	9.53%	19.62%	9.69%	8.55%	10.74%	7.93%	9.29%
FCF Conversion (EBITDA)	57.24%	61.36%	108.48%	53.95%	56.76%	112.5%	59.86%	59.5%
FCF Conversion (Net income)	84.41%	87.12%	167.75%	77.74%	94.32%	236.89%	98.29%	94.19%
Dividend per Share ²	14.00	15.00	45.00	45.00	50.00	36.15	45.78	52.20
Announcement Date	21/05/19	30/04/20	26/04/21	13/05/22	27/04/23	25/04/24	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: März	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1
Net sales ¹	96,471	97,299	101,976	108,813	114,508	121,163	127,079	131,295	137,346	137,182	131,590	132,141	128,046	129,453	129,824
EBITDA ¹	18,955	19,481	18,764	19,952	20,600	20,884	18,801	19,841	21,440	20,205	13,380	14,368	12,443	14,215	16,286
EBIT ¹	15,371	16,037	15,453	16,522	16,979	16,042	14,034	14,924	16,459	15,303	8,914	9,591	7,568	9,528	11,657
Operating Margin	15.93%	16.48%	15.15%	15.18%	14.83%	13.24%	11.04%	11.37%	11.98%	11.16%	6.77%	7.26%	5.91%	7.36%	8.98%
Earnings before Tax (EBT) ¹	17,164	15,441	17,943	18,981	18,864	18,733	14,855	16,639	17,712	15,249	9,712	11,273	7,727	10,255	13,123
Net income ¹	13,098	10,814	13,532	13,387	13,685	15,057	11,316	12,854	12,966	11,177	6,925	7,589	6,041	7,518	9,927
Net margin	13.58%	11.11%	13.27%	12.3%	11.95%	12.43%	8.9%	9.79%	9.44%	8.15%	5.26%	5.74%	4.72%	5.81%	7.65%
EPS ²	14.87	12.26	15.32	15.14	15.46	16.94	12.78	14.52	14.64	12.62	7.820	9.187	7.127	8.759	11.25
Dividend per Share ²	-	45.00	-	-	-	45.00	-	-	-	50.00	-	-	-	45.00	-
Announcement Date	29/01/21	26/04/21	29/07/21	25/10/21	01/02/22	13/05/22	25/07/22	01/11/22	30/01/23	27/04/23	26/07/23	-	-	-	-

¹INR in Million²INR

Estimates

Balance Sheet Analysis

Fiscal Period: März	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	75,439	63,324	108,353	68,287	54,597	59,839	59,363	77,716
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	36,274	35,135	74,278	43,269	45,568	55,853	42,472	54,094
ROE (net income / shareholders' equity)	22%	19.2%	19%	21.5%	17.6%	8.64%	15.9%	20.5%
ROA (Net income/ Total Assets)	13.5%	11.4%	11.5%	13.2%	10.6%	5.26%	8.83%	11.5%
Assets ¹	319,420	354,002	385,157	422,744	455,120	447,885	489,317	497,415
Book Value Per Share ²	229.0	250.0	284.0	306.0	315.0	301.0	308.0	319.0
Cash Flow per Share ²	49.20	49.50	91.70	59.60	62.90	71.90	69.70	84.50
Capex ¹	8,046	8,446	6,660	9,584	10,152	7,911	15,061	16,740
Capex / Sales	2.32%	2.29%	1.76%	2.15%	1.91%	1.52%	2.81%	2.88%
Announcement Date	21/05/19	30/04/20	26/04/21	13/05/22	27/04/23	25/04/24	-	-

¹INR in Million²INR

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Tech Mahindra Limited

Trading Rating

Investor Rating

ESG Refinitiv

B+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

1,279 INR

Average target price

1,269 INR

Spread / Average Target

-0.73%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other IT Services & Consulting

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AUTOMATIC DATA PROCESSING, INC.	+4.34%	99.85B
RELX PLC	+7.04%	77.56B
CROWDSTRIKE HOLDINGS, INC.	+19.09%	73.55B
INFOSYS LIMITED	-7.30%	71B
SNOWFLAKE INC.	-20.54%	52.81B
HCL TECHNOLOGIES LIMITED	+0.53%	47.86B

Other IT Services & Consulting