Tech Mahindra Ltd - Stock Valuation and Financial Performance

BSE: 532755 | NSE: TECHM | IT - Software | Large Cap

Tech Mahindra Share Price

1,242.25 -24.20 -1.91%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Tech Mahindra

Overall Rating
Bole Toh

1. Quality

2. Valuation


3. Price Trend

Semi Strong

Tech Mahindra stock performance -

mw4me loader
P/E Ratio (CD):
Market Cap:
1,21,337.8 Cr.
52-wk low:
52-wk high:

Is Tech Mahindra Ltd an attractive stock to invest in?

1. Is Tech Mahindra Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Tech Mahindra Ltd is a good quality company.

2. Is Tech Mahindra Ltd undervalued or overvalued?

The key valuation ratios of Tech Mahindra Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Tech Mahindra Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Tech Mahindra Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Tech Mahindra:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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

ROCE % 38.9%24.9%19.7%14.4%15.2%18.6%15.4%16.4%18.1%16.3%-
Value Creation

Growth Parameters

Growth Parameters Colour Code Guide

Sales 18,83122,62126,49429,14130,77334,74236,86837,85544,64653,29052,842
Sales YoY Gr.-20.1%17.1%10%5.6%12.9%6.1%2.7%17.9%19.4%-
Adj EPS 342933.528.935.348.242.649.358.954.428.8
YoY Gr.--14.7%15.5%-13.6%22.2%36.5%-11.7%15.7%19.5%-7.6%-
BVPS (₹) 96123.2161.2181.1208.6224245.3279.1301.7313276.2
Adj Net
Cash Flow from Ops. 1,5962,4483,1374,0713,5544,4324,3588,0945,2855,572-
Debt/CF from Ops.


CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12.3%11.6%13.1%19.4%
Adj EPS 5.4%9%8.5%-7.6%
Share Price 11.1% 9.6% 7.5% 14.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Return on
Equity %
Op. Profit
Mgn %
Net Profit
Mgn %
Debt to
Working Cap
Cash Conv.

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 13.07%

Return on Equity has declined versus last 3 years average to 9.80%

Net Profit has been subdued in last 3 years 8.49%

Sales growth is not so good in last 4 quarters at 2.54%

Latest Financials - Tech Mahindra Ltd.

Standalone Consolidated
TTM EPS (₹) 23.3 28.8
TTM Sales (₹ Cr.) 42,627 52,842
BVPS (₹.) 243.3 276.2
Reserves (₹ Cr.) 23,274 26,490
P/BV 5.11 4.50
PE 53.27 43.11
From the Market
52 Week Low / High (₹) 982.95 / 1416.00
All Time Low / High (₹) 50.92 / 1837.75
Market Cap (₹ Cr.) 1,21,338
Equity (₹ Cr.) 488.4
Face Value (₹) 5
Industry PE 33.5

Management X-Ray of Tech Mahindra:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Tech Mahindra

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
Operating Expenses 15,04318,81422,36325,11726,09028,40531,35931,05936,65645,498
Manufacturing Costs5226367848788648861,0689031,1361,341
Material Costs0000000000
Employee Cost 9,73611,91413,94815,45416,62417,50818,81019,29722,28627,692
Other Costs 4,7866,2647,6328,7868,60310,01111,48110,85813,23416,465
Operating Profit 3,7883,8084,1314,0234,6836,3375,5096,7967,9907,792
Operating Profit Margin (%) 20.1%16.8%15.6%13.8%15.2%18.2%14.9%18.0%17.9%14.6%
Other Income 5094835799391,4445341,1927871,142965
Interest 806997129162133192174163326
Depreciation 5226047599781,0851,1291,4461,4581,5201,957
Exceptional Items 120000000000
Profit Before Tax 3,8153,6183,8573,8534,8795,5435,0585,9537,4526,446
Tax 7529608301,0021,0931,2541,1601,6001,8221,589
Profit After Tax 3,0622,6593,0272,8513,7864,2893,8974,3535,6304,857
PAT Margin (%) 16.3%11.8%11.4%9.8%12.3%12.3%10.6%11.5%12.6%9.1%
Adjusted EPS (₹)32.427.434.432.143.048.446.350.763.454.9
Dividend Payout Ratio (%)15%22%35%28%33%29%32%89%71%91%

Balance Sheet

(All Figures are in Crores.)

Equity and Liabilities

Shareholders Fund 8,96111,83714,03715,89018,42819,87621,38724,39426,47727,540
Share Capital 234480436439442444436437439440
Reserves 8,72811,35713,60215,45117,98619,43220,95123,95726,03827,100
Minority Interest144160193464509478393380495470
Long Term Debt1946197385771209179166142129
Short Term Debt336298068349551,1962,2501,4961,3481,357
Trade Payables1,4722,0592,2761,8062,0372,4893,2572,7854,0954,385
Others Liabilities 4,9274,7284,4856,4207,1618,5909,0449,54411,49510,976
Total Liabilities 15,55719,45821,99325,79929,86132,83836,50938,76544,05244,857

Fixed Assets

Gross Block5,4607,6798,52912,42714,55214,54517,68218,74725,77727,891
Accumulated Depreciation2,8663,6464,2206,0687,1207,6548,9549,81811,07313,034
Net Fixed Assets2,5944,0334,3096,3597,4326,8908,7288,92914,70414,857
CWIP 26656862937324027650118165120
Investments 1,4722,1031,2432,3964,8417,3425,84810,2384,8843,388
Trade Receivables4,3495,2065,7715,3386,4986,9597,5779,03211,93312,882
Cash Equivalents 3,3152,4054,0183,2193,0442,3593,1482,8353,9754,255
Others Assets3,5515,1195,9838,0547,7408,93711,1227,5888,3509,332
Total Assets 15,55719,45821,99325,79929,86132,83836,50938,76544,05244,857

Cash Flow

(All Figures are in Crores.)
Cash Flow From Operating Activity 1,5962,4483,1374,0713,5544,4324,3588,0945,2855,572
PBT 3,8153,6183,8573,8534,8795,5435,0585,9537,4526,446
Adjustment 4907521,0577109841,6071,3351,9921,5812,965
Changes in Working Capital -1615-850-461588-783-1057-5221564-1434-1845
Tax Paid -1,094-1,073-1,315-1,080-1,526-1,661-1,513-1,415-2,314-1,993
Cash Flow From Investing Activity -190-2,092-1,460-2,890-3,360-2,1161,029-5,450482-279
Capex -914-1,113-871-760-790-779-829-573-835-969
Net Investments 531180-698-1,847-2,784-1,5171,494-4,0005,7241,590
Others 194-1,159109-282214180364-878-4,408-899
Cash Flow From Financing Activity -972-829-496-1,571-269-2,251-4,466-2,987-4,667-5,078
Net Proceeds from Shares 50583635863647578744
Net Proceeds from Borrowing -283-574-23-241743-648-956-284134
Interest Paid -97-103-93-111-160-135-188-179-123-257
Dividend Paid -136-550-555-1,239-944-1,491-2,492-1,759-3,981-4,263
Others -506340138-145-13-876-1,077-690-636
Net Cash Flow 434-4731,181-389-7664921-3431,100215
ROE (%)42.8525.5723.3919.0522.0722.3918.8919.0222.1317.98
ROCE (%)47.6432.7826.4822.1524.2924.6921.4222.9926.4922.41
Asset Turnover Ratio1.541.
PAT to CFO Conversion(x)0.520.921.041.430.941.031.121.860.941.15
Working Capital Days
Receivable Days59777670707172808685
Inventory Days0001111000
Payable Days0000000000

Tech Mahindra Ltd Stock News

Tech Mahindra Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Tech Mahindra on 12-Apr-2024 16:59 is ₹1,242.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Tech Mahindra stood at ₹1,21,337.8.
The latest P/E ratio of Tech Mahindra as of 12-Apr-2024 16:59 is 53.27.
The latest P/B ratio of Tech Mahindra as of 12-Apr-2024 16:59 is 5.11.
The 52-week high of Tech Mahindra is ₹1,416 and the 52-week low is ₹983.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Tech Mahindra is ₹42,627 ( Cr.) .

About Tech Mahindra Ltd

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.


  • 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


  • 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.


  • 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.


  • 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.


  • 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.


  • 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.


  • 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.


  • 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.


  • 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, 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’.
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