SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Tech Mahindra Ltd

BSE: 532755 NSE: TECHM ISIN: INE669C01036
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Tech Mahindra Ltd belong to?
Tech Mahindra Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Tech Mahindra Ltd a good quality company?
Tech Mahindra Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Tech Mahindra Ltd undervalued or overvalued?
Tech Mahindra Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Tech Mahindra Ltd a good buy now?
Tech Mahindra Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Tech Mahindra Ltd?
Tech Mahindra Ltd revenue growth is 1.9% for FY-2025 , which is below its 5 year CAGR of 7.5% , indicating slower growth.
Q.2 Gross Profit margin of Tech Mahindra Ltd?
Tech Mahindra Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.2% for FY-2025 , which is below its 5 year median of 15.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of Tech Mahindra Ltd?
Tech Mahindra Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.03% for FY-2025 , which is below its 5 year median of 14.62% indicating decreasing margins.
Q.4 Net Profit Margin of Tech Mahindra Ltd?
Tech Mahindra Ltd Net Profit Margin is 8.03% for FY-2025 , is below with its 5 year median of 9.11%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 14.2 15.8
Operating Profit Margin 13.03 14.62
Net Profit Margin 8.03 9.11
Q.5 Return on Asset of Tech Mahindra Ltd?
Tech Mahindra Ltd Return on Asset is 10.05%, which is below its 5 year historical median of 10.93%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Tech Mahindra Ltd?
Tech Mahindra Ltd Return on equity is 15.9% for FY-2025 , which is below its historical median of 17.98%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Tech Mahindra Ltd?
Tech Mahindra Ltd Return on capital employed is 20.43% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Tech Mahindra Ltd?
Tech Mahindra Ltd Cash conversion cycle is 35 days, below its historical median of 37 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.25 1.2
ROE 15.9 17.98
ROCE 20.43 22.41
Cash Conversion Cycle 35 days 37 days
Q.9 Debt to Equity ratio of Tech Mahindra Ltd?
Tech Mahindra Ltd Debt-to-Equity ratio is 0.02 , which is lower with the industry average of 0.03 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Tech Mahindra Ltd?
Tech Mahindra Ltd Debt to cash flow from operations is 0.08 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tech Mahindra Ltd?
Promoters hold 34.98% of the Tech Mahindra Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tech Mahindra Ltd vs industry peers?
Tech Mahindra Ltd revenue CAGR is 7.52% , compared to the industry median CAGR of 11.32% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 52,988.3 1,17,927.7
Gross Profit 7,524.3 27,851.9
Operating Profit 6,668 25,544
Net Profit 4,253 17,737.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.25 1.28
ROE 15.9 26.41
ROCE 20.43 35.53
Cash Conversion Cycle (days) 35.23 44

Valuation & price assessment

Q.1 Stock return of Tech Mahindra Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.4% 8.4% 13.7% 15.8%
Q.3 Valuation ratios of Tech Mahindra Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 31.59 17.74 22.96
Price to Book 5.1 3.21 2.61
Price to Sales 2.65 1.93 4.40
EV to EBITDA 16.3 10.51 17.20

Check more companies

1. TCS
2. Infosys
3. HCL Tech.
4. Wipro
5. Tech Mahindra
6. LTM
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×