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TEAMLEASE: Leadership Transition Will Support Margin Expansion And Future Upside

India's Workforce Transformation And Digital Platforms Will Expand HR Services

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TEAMLEASE
AnalystHighTarget
Not Invested
Published 24 Jul 2025

Update shared on 12 Dec 2025

Fair value Decreased 6.49%
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AnalystHighTarget's Fair Value
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1Y
-43.0%
7D
-2.0%

Analysts have trimmed their price target on TeamLease Services by roughly 6.5 percent to about ₹3,170, citing expectations of slightly slower revenue growth and a modest de rating in future valuation multiples, partly offset by a small improvement in profit margins.

What's in the News

  • Appointment of Ms. Suparna Mitra as Managing Director and Chief Executive Officer for a five year term effective February 2, 2026, succeeding current MD and CEO Mr. Ashok Reddy, who will transition to Executive Vice Chairman to oversee strategy and adjacencies (Key Developments).
  • Leadership transition designed for continuity, with Ashok Reddy supporting a phased handover after building TeamLease into a diversified HR services platform with pan India presence across more than 800 locations and significant EBITDA growth since listing (Key Developments).
  • Upcoming board meeting scheduled for November 5, 2025, to review and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (Key Developments).
  • Shareholders approved alterations to the Articles of Association, signaling updates to the company’s governance or operating framework (Key Developments).

Valuation Changes

  • The Fair Value Estimate has fallen moderately to about ₹3,172 from roughly ₹3,392, reflecting a lower intrinsic value assessment for the stock.
  • The Discount Rate has risen slightly to about 13.19 percent from around 13.16 percent, implying a marginally higher required return and risk perception.
  • Revenue Growth has been trimmed from roughly 19.6 percent to about 17.4 percent, indicating expectations of somewhat slower top line expansion.
  • The Net Profit Margin has improved modestly from about 1.27 percent to roughly 1.33 percent, signaling a small gain in profitability assumptions.
  • The Future P/E has been reduced from around 31.7x to about 29.2x, pointing to a modest de-rating in the valuation multiple applied to forward earnings.

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