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Tech Mahindra Ltd Stock Analysis

Large Cap
Evaluated by 7429 users | BSE: 532755 | NSE: TECHM |
IT - Software

Tech Mahindra, part of the eminent Mahindra Group, is a leading global enabler of digital transformation, consulting and business re-engineering services and solutions. The company represent the bold, new, disruptive digital era, offering innovative and...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tech Mahindra Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Return on Capital Employed 23.05%23.85%38.89%24.85%19.74%14.35%14.96%17.91%15.42%16.38%
Value Creation Index 0.810.872.050.950.550.120.170.400.210.28
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,4906,87318,83122,62126,49429,14130,77334,74236,86837,855
Y-o-Y Gr. Rt.-25.2%174%20.1%17.1%10%5.6%12.9%6.1%2.7%
Adjusted EPS (Rs.) 20.6626.7333.9728.9833.4628.934.6946.3642.5949.29
Y-o-Y Gr. Rt.-29.4%27.1%-14.7%15.5%-13.6%20%33.6%-8.1%15.7%
Book Value per Share (Rs.) 78.49104.0995.95123.2161.16181.06208.6223.98245.32279.11
Adjusted Net Profit 1,0541,3703,1722,7852,9152,5363,0644,1133,7124,308
Net Op. Cash Flow (Rs. Cr.) 7128551,5962,4483,1374,0713,5544,4324,3588,094
Debt to Cash Flow from Ops 1.581.610.230.290.350.340.670.450.570.21
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tech Mahindra Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 23.9%7.4%7.2%2.7%
Adjusted EPS 10.1%8.1%12.4%15.7%
Book Value per Share 15.111.610.213.8
Share Price 22.7% 17.6% 21.4% 73.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Return on Equity (%) 28.4728.9143.4325.9920.7715.1516.2419.7816.6617.53
Operating Profit Margin (%) 16.4920.6921.3117.8215.613.8415.2818.2414.9417.95
Net Profit Margin (%) 9.1112.9917.0212.4511.128.849.91129.7111.18
Debt to Equity 0.280.260.040.060.080.090.130.10.120.07
Working Capital Days 143135105147152157163157170169
Cash Conversion Cycle 44322330272934302518
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 35.73%
Institutions 52.82%
Non-Institutions 11.45%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tech Mahindra Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tech Mahindra Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tech Mahindra Ltd's performance infers:

Tech Mahindra Ltd earnings have grown by 8.1%, whereas share price has appreciated 17.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tech Mahindra Ltd share prices over the last 10 years. Here is what we found out:

Tech Mahindra Ltd share price has appreciated 19.2% annually over the past ten years.

Tech Mahindra, part of the eminent Mahindra Group, is a leading global enabler of digital transformation, consulting and business re-engineering services and solutions. The company represent the bold, new, disruptive digital era, offering innovative and customer-centric services and solutions to integrate technology with businesses more meaningfully and innovatively. Its core operation has been built around the credo ‘Connected World. Connected

Tech Mahindra, part of the eminent Mahindra Group, is a leading global enabler of digital transformation, consulting and business re-engineering services and solutions. The company represent the bold, new, disruptive digital era, offering innovative and customer-centric services and solutions to integrate technology with businesses more meaningfully and innovatively. Its core operation has been built around the credo ‘Connected World. Connected Experiences.’ The company’s solutions help clients integrate their platforms across a wide range of technologies to deliver tangible business value to their stakeholders.

The company offers the right blend of physical and digital design, powered by technology. It uses digital capabilities to transform client’s internal businesses and technology operations, and deliver industry-leading outcomes. Its solutions help clients accelerate their digital transformation journey by building intelligent and digital-next businesses, backed by next-generation technologies. The company’s Makers Lab develops future-ready solutions by leveraging next generation technologies like Artificial Intelligence (AI), Machine Learning (ML), Robotics, Internet of Things (IoT), Augmented Reality (AR)/ Virtual Reality (VR), 5G – Network of the future. With many technology platforms and solutions, it help customers achieve faster time-to-market and incremental innovation capabilities. It delivers technology solutions across many countries in Americas, Europe, Middle-East, Latin America, Africa and Asia-Pacific. Such prudent geographic diversification also reduces market concentration risks to the business.

Business area of the company

The company offers a bouquet of services which includes Telecom IT & Network Services, Consulting, Application Outsourcing, Infrastructure Outsourcing, Engineering Services, BPO, Platform Solutions and Mobile Value Added products and Services.

Services:

  • Infrastructure and Cloud Services
  • Integrated Engineering Solutions
  • Enterprise Business Solution 
  • Data Analytics 
  • Network Services 
  • Cyber Security 
  • Business Process Services 
  • Testing Services
  • Performance Engineering 
  • Business Excellence Services (Consulting) 
  • Telecom Product Engineering 
  • Enterprise of Future 
  • Customer Experience 
  • Digital Supply Chain

Awards and accolades

2013-14:

  • Recognized as the ‘Top Telecom Company of the year’ by Voice and Data.
  • The Top IT & ITES Exporter from the state of Andhra Pradesh for the year 2012-13 by ITsAP - Information Technology & Services Industry Association of Andhra Pradesh.
  • Won Gold at Express IT awards by Financial Express for EMRI and Fightback in ‘CSR in IT category’.
  • Winner of 2013, 2011 and 2010 AT&T Supplier Award for outstanding performance & service to AT&T and its affiliates.
  • iCMG world award in the ‘IT Landscape Rationalization’ category along with BT.

2014-15:

  • Ranked 5th in IT and Software ranking by DUN and Bradstreet.
  • Digital Humanitarian Award at TMF World 2014 for deploying Women Safety Mobile Application Fightback.
  • Businessworld identified Tech Mahindra among the fastest growing companies in India based on financial performance.
  • Featured in FINTECH TOP 25 rankings for the year 2014 by IDC Financial Insights.

2015-16:

  • National Award for Supply Chain and Logistics Excellence.
  • Indo American Corporate Excellence Award for Excellence in CSR.
  • Dow Jones Sustainability Index under both emerging Markets and DJSI world Category.
  • Golden Peacock HR Excellence Award for Outstanding People Management Practices.
  • ET Telecom Awards for Cloud Technology.

2016-17:

  • The Business World HR Excellence Award.
  • HR Excellence Award from the Society for Human Resource Management.
  • Golden Peacock Award for HR Excellence.
  • CMO ASIA Award for Best Use of Social Media in Employer Branding, 2016.
  • NASSCOM Award for Best Practices in HR Technology, 2016.

2017-18:

  • Business World HR Award in HR Technology 2017.
  • Featured in AVTAR - 100 Best Companies of 2017 Working Mother and AVTAR Best Companies for Women in India.
  • Featured in HR Asia Best Companies To Work For In Asia 2017 - Malaysia.
  • Excellence in Workplace Diversity Award at Mercer NDTV Employer Excellence Awards 2017.

2018-19:

  • Ranked 15th on the Forbes Digital 100 list, and the highest-ranked non-US Company on the list.
  • Received the AICRA STEM Awards 2018 in the ‘Excellence in Automation’ category, recognizing the best automation system integrators in the business.
  • Gold Winner at the CEO World Award in the ‘CEO Achievement of the Year’ category.
  • Selected as ‘Brand of the Decade 2019’ by BARC Asia, a media research and rating agency.
  • Awarded Golden Peacock Global Award for Excellence in Corporate Governance – 2018 by the Institute of Directors (IOD).
  • Recognized as a gold winner for being the Most Innovative Cyber security Company at the Cybersecurity Excellence Awards 2019.
  • Featured in the Forbes Asia’s Fab 50 Companies List 2018.
  • One of the Top 10 Best Company for Women in India in the 2018 Working Mother & AVTAR 100 Best Companies List.

2019-20:

  • Winner of the ‘COMPANY OF THE YEAR – IT’ at the second edition of CNBC-AWAAZ CEO Awards for Year 2019.
  • Ranked 21 in India’s  Best Companies to Work For 2020 by the Great Place to Work Institute. Also recognized as Best in Mega Employer and in Best Companies for Career Management list.
  • Recognised amongst ‘Most Valuable Digital Transformation Companies in 2019’ by a global business magazine, CIOLook.
  • Won the ET Innovation Award in the ‘People Innovation’ category from The Economic Times.
  • Tech Mahindra’s CSR arm, Tech Mahindra Foundation (TMF) received ASSOCHAM Skilling India Awards 2019 for Best Higher Vocational Institute for Skill Development.
  • Winner of ‘The Golden Peacock HR Excellence Award’ for the year 2019 in the IT sector.
  • Emerged winners in the categories of ‘Diversity & Inclusion’ and ‘HR Technology’ in both BusinessWorld HR Excellence Awards 2020 and 10th Asia’s Best Employer Brand Awards 2019.

Milestones:

  • 2002: Mahindra British Telecom (MBT) assessed at Level 5 of SEI CMM by KPMG.
  • 2000: MBT incorporates MBT Software Technologies, Singapore.
  • 2005: Certified BS 7799-2:2002 (Information Security Management Framework) by RWTUV now known as TUV Nord.
  • 2005: Acquired Axes Technologies (India), including its US and Singapore subsidiaries.
  • 2005: Largest global development center outside India (in Melbourne) begins operation.
  • 2005: Citisoft and Knowledge Dynamics acquired.
  • 2006: Name changed to Tech Mahindra.
  • 2006: Raised Rs 4.65 billion ($100 million) from a hugely successful IPO to build a new facility in Pune, to house about 9,000 staff.
  • 2006: Formed a JV with Motorola Inc. under the name CanvasM.
  • 2006: Set up the first 'Global Innovation Hub' in Singapore.
  • 2006: Set up operations in Guangzhou, China.
  • 2007: Acquired iPolicy Networks.
  • 2007: Announced the Official IT Services Provider for the FIFA World Cup 2010TM.
  • 2007: Opens Global Development Center (GDC) in Malaysia.
  • 2007: First Asian company to feature in the 'Training' Magazine's list of Top 125 companies for learning.
  • 2009: Tech Mahindra acquires a controlling stake in Satyam.
  • 2010: Satyam gets rebranded as 'Mahindra Satyam'.
  • 2010: Expands footprint in Latin America.
  • 2011: Inaugurated Saab India Technology Center.
  • 2012: Merger of Tech Mahindra and Mahindra Satyam announced.
  • 2012: Acquisition of Hutchison Global Services.
  • 2012: Acquisition of Comviva Technologies.
  • 2013: Tech Mahindra-Mahindra Satyam merger finally consummated.
  • 2013: Mahindra Satyam acquires majority stake in Complex IT.
  • 2013: Mahindra Satyam and Tech Mahindra launches the ‘Young CEO’ Program.
  • 2013: Establishes First European Testing Lab in Sweden.
  • 2013: Mahindra Satyam launches Contextual Services Platform for E-Commerce and Banking.
  • 2013: Launches BSS Platform for New Telcos Entering the Market.
  • 2013: Tech Mahindra Announces Strategic Partnership with NIS -Tech Mahindra.
  • 2013: Mahindra Satyam merger consummated Announces new brand identity.
  • 2013: Tech Mahindra Signs an Outsourcing Contract for Application Maintenance and Development with Volvo Car Corporation.
  • 2013: Tech Mahindra and Bosch Software Innovations announce Global System Integrator Partnership.
  • 2013: Launches Hewlett Packard Center of Excellence.
  • 2014: Launches NFC Testing Lab.
  • 2014: Tech Mahindra and Microsoft Partner to Co-Develop the Spring Release of Microsoft Dynamics CRM.
  • 2014: Launches Alstom Transport Global Development Center.
  • 2014: Launches Reference Data Management Solution in North America.
  • 2014: Opens a Delivery Center in Belgium.
  • 2014: Launches Airbus Group’s ‘HUB’ at Electronic city facility, Bengaluru.
  • 2014: Launches Telematics Platform for the Insurance Industry.
  • 2015: Forms a joint venture with Avion Systems.
  • 2015: Acquires SOFGEN to expand core banking expertise.
  • 2015: Entered into a strategic agreement with China-based company Gao Feng Advisory Company.
  • 2015: Signed a contract with Bombardier to develop an aircraft ground support system (AGSS).
  • 2016: Acquisition of a UK Company.
  • 2016:  Acquires leading Digital Change Agents: The BIO Agency.
  • 2016: Enters Channel NewsAsia Sustainability Index.
  • 2016: Launches Virtual Network Function Exchange.
  • 2016: Tech Mahindra-Mahindra Comviva launches new Revenue Experience platform for mobile operators.
  • 2016: Launches FEEDS, a Connected Intelligent Solution Transforming Fresh Food Supply Chain.
  • 2017: Tech Mahindra, Gao Feng Advisory Company join hands to set up Artificial Intelligence Lab in Shanghai.
  • 2017: Tech Mahindra, Saudi Telecom Company Alliance to Innovate for Vision 203.
  • 2018: Tech Mahindra partners with edX.org, the leading online learning platform founded by Harvard and MIT.
  • 2019: Tech Mahindra partners with Mahindra TEQO.
  • 2019: Tech Mahindra partners with Business Finland for R&D in 5G, 6G.
  • 2019: Tech Mahindra acquires BORN Group.
  • 2019: Tech Mahindra secures Rs 500 crore smart city project from PCMC.
  • 2019: Tech Mahindra, Celonis ink global strategic alliance to drive enterprise performance.
  • 2020: Inaugurates new delivery center in Telangana.
  • 2020: Launches Google Cloud COE in Hyderabad.
  • 2020: Tech Mahindra, Telangana government unveil T-Block Accelerator.
  • 2020: Tech Mahindra, IBM to help clients modernize operations leveraging cloud.
  • 2020: Tech Mahindra launches mPAC 3.0.
  • 2020: launches ‘Blockchain based Contracts and Rights Management System’.
  • 2020: Signs global partnership with Hinduja Group's CyQureX.
  • 2020: Launches ‘Microsoft Business Unit’ to accelerate digital transformation globally.
  • 2020: Expands strategic alliance with BMC Software.
  • 2020: Tech Mahindra, HAL sign Rs 400 crore contract for ‘Project Parivartan’.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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