Tech Mahindra Limited

BSE:532755 Stock Report

Market Cap: ₹1.5t

Tech Mahindra Valuation

Is 532755 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 532755 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 532755 (₹1747.7) is trading above our estimate of fair value (₹1106.93)

Significantly Below Fair Value: 532755 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 532755?

Key metric: As 532755 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 532755. This is calculated by dividing 532755's market cap by their current earnings.
What is 532755's PE Ratio?
PE Ratio47.2x
Earnings₹32.73b
Market Cap₹1.55t

Price to Earnings Ratio vs Peers

How does 532755's PE Ratio compare to its peers?

The above table shows the PE ratio for 532755 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.9x
507685 Wipro
25.4x8.1%₹3.0t
LTIM LTIMindtree
39x14.7%₹1.8t
PERSISTENT Persistent Systems
69.1x20.4%₹851.5b
526299 Mphasis
34.2x13.7%₹545.9b
532755 Tech Mahindra
47.2x24.9%₹1.5t

Price-To-Earnings vs Peers: 532755 is expensive based on its Price-To-Earnings Ratio (47.2x) compared to the peer average (41.9x).

Price to Earnings Ratio vs Industry

How does 532755's PE Ratio compare vs other companies in the IN IT Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.1xn/aUS$22.05m
517429 Athena Global Technologies
0.6xn/aUS$15.78m
509040 Netlink Solutions (India)
3.2xn/aUS$5.10m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
532755 47.2xIndustry Avg. 37.0xNo. of Companies18PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 532755 is expensive based on its Price-To-Earnings Ratio (47.2x) compared to the Indian IT industry average (36.3x).

Price to Earnings Ratio vs Fair Ratio

What is 532755's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

532755 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47.2x
Fair PE Ratio52.2x

Price-To-Earnings vs Fair Ratio: 532755 is good value based on its Price-To-Earnings Ratio (47.2x) compared to the estimated Fair Price-To-Earnings Ratio (52.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 532755 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,747.70
₹1,659.78
-5.0%
14.0%₹2,000.00₹1,050.00n/a41
Nov ’25₹1,603.90
₹1,659.78
+3.5%
14.0%₹2,000.00₹1,050.00n/a41
Oct ’25₹1,625.75
₹1,518.83
-6.6%
14.9%₹1,905.00₹1,005.00n/a42
Sep ’25₹1,635.70
₹1,478.97
-9.6%
14.5%₹1,810.00₹1,005.00n/a42
Aug ’25₹1,543.20
₹1,476.00
-4.4%
14.7%₹1,810.00₹1,005.00n/a41
Jul ’25₹1,472.85
₹1,314.30
-10.8%
15.3%₹1,715.00₹950.00n/a41
Jun ’25₹1,228.85
₹1,270.04
+3.4%
12.8%₹1,589.86₹930.00n/a42
May ’25₹1,261.95
₹1,270.04
+0.6%
12.8%₹1,589.86₹930.00n/a42
Apr ’25₹1,244.80
₹1,282.24
+3.0%
12.5%₹1,555.00₹950.00n/a38
Mar ’25₹1,271.65
₹1,293.21
+1.7%
12.4%₹1,555.00₹950.00n/a38
Feb ’25₹1,311.95
₹1,289.24
-1.7%
12.9%₹1,555.00₹950.00n/a37
Jan ’25₹1,298.10
₹1,126.22
-13.2%
13.3%₹1,450.00₹810.00n/a37
Dec ’24₹1,220.45
₹1,114.62
-8.7%
12.3%₹1,372.00₹810.00n/a37
Nov ’24₹1,124.65
₹1,112.05
-1.1%
12.1%₹1,372.00₹810.00₹1,603.9037
Oct ’24₹1,223.10
₹1,121.03
-8.3%
15.2%₹1,641.00₹850.00₹1,625.7537
Sep ’24₹1,227.15
₹1,071.03
-12.7%
12.3%₹1,316.00₹850.00₹1,635.7037
Aug ’24₹1,143.55
₹1,067.97
-6.6%
11.9%₹1,316.00₹850.00₹1,543.2038
Jul ’24₹1,130.55
₹1,102.61
-2.5%
10.1%₹1,300.00₹900.00₹1,472.8538
Jun ’24₹1,120.95
₹1,094.92
-2.3%
10.1%₹1,300.00₹845.00₹1,228.8538
May ’24₹1,023.75
₹1,094.92
+7.0%
10.1%₹1,300.00₹845.00₹1,261.9538
Apr ’24₹1,101.85
₹1,158.89
+5.2%
8.1%₹1,375.00₹920.00₹1,244.8037
Mar ’24₹1,127.00
₹1,106.03
-1.9%
7.4%₹1,260.00₹920.00₹1,271.6536
Feb ’24₹1,024.25
₹1,109.21
+8.3%
7.9%₹1,320.00₹920.00₹1,311.9539
Jan ’24₹1,016.50
₹1,134.78
+11.6%
9.5%₹1,369.00₹920.00₹1,298.1036
Dec ’23₹1,101.80
₹1,155.65
+4.9%
14.2%₹1,940.00₹920.00₹1,220.4537
Nov ’23₹1,071.65
₹1,151.22
+7.4%
14.4%₹1,940.00₹920.00₹1,124.6537

Analyst Forecast: Target price is lower than the current share price.

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