Tech Mahindra
Market Cap
₹506.4b
Last Updated
2020/06/05 13:11 UTC
Data Sources
Company Financials +
Executive Summary
Tech Mahindra Limited provides information technology (IT) services and solutions in the Americas, Europe, India, and internationally.
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Tech Mahindra's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TECHM's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
9.3%
TECHM
3.8%
IN IT
6.4%
IN Market
1 Year Return
-22.8%
TECHM
-6.6%
IN IT
-16.2%
IN Market
Return vs Industry: TECHM underperformed the Indian IT industry which returned -6.6% over the past year.
Return vs Market: TECHM underperformed the Indian Market which returned -16.2% over the past year.
Shareholder returns
| TECHM | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.3% | 3.8% | 6.4% |
| 30 Day | 14.4% | 8.6% | 8.4% |
| 90 Day | -21.7% | -3.7% | -8.9% |
| 1 Year | -20.0%-22.8% | -3.7%-6.6% | -14.6%-16.2% |
| 3 Year | 62.5%49.9% | 54.7%45.3% | -4.9%-9.9% |
| 5 Year | 18.2%5.1% | 56.8%41.9% | 21.6%10.2% |
Price Volatility Vs. Market
How volatile is Tech Mahindra's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Does Tech Mahindra Limited (NSE:TECHM) Fare As A Dividend Stock?2 weeks ago | Simply Wall St
Is Weakness In Tech Mahindra Limited (NSE:TECHM) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?1 month ago | Simply Wall St
Do Tech Mahindra Limited’s (NSE:TECHM) Returns On Capital Employed Make The Cut?Valuation
Is Tech Mahindra undervalued compared to its fair value and its price relative to the market?
12.55x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TECHM (₹579.85) is trading above our estimate of fair value (₹403.73)
Significantly Below Fair Value: TECHM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TECHM is poor value based on its PE Ratio (12.5x) compared to the IT industry average (8.4x).
PE vs Market: TECHM is poor value based on its PE Ratio (12.5x) compared to the Indian market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: TECHM is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: TECHM is overvalued based on its PB Ratio (2.3x) compared to the IN IT industry average (0.8x).
Next Steps
Future Growth
How is Tech Mahindra forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?
7.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TECHM's forecast earnings growth (7.1% per year) is below the savings rate (7.2%).
Earnings vs Market: TECHM's earnings (7.1% per year) are forecast to grow slower than the Indian market (18.3% per year).
High Growth Earnings: TECHM's earnings are forecast to grow, but not significantly.
Revenue vs Market: TECHM's revenue (5.5% per year) is forecast to grow slower than the Indian market (7% per year).
High Growth Revenue: TECHM's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TECHM's Return on Equity is forecast to be low in 3 years time (18.1%).
Next Steps
Past Performance
How has Tech Mahindra performed over the past 5 years?
11.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TECHM has high quality earnings.
Growing Profit Margin: TECHM's current net profit margins (10.9%) are lower than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: TECHM's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: TECHM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TECHM had negative earnings growth (-6.2%) over the past year, making it difficult to compare to the IT industry average (5.7%).
Return on Equity
High ROE: TECHM's Return on Equity (17.6%) is considered low.
Next Steps
Financial Health
How is Tech Mahindra's financial position?
Financial Position Analysis
Short Term Liabilities: TECHM's short term assets (₹231.7B) exceed its short term liabilities (₹109.3B).
Long Term Liabilities: TECHM's short term assets (₹231.7B) exceed its long term liabilities (₹42.2B).
Debt to Equity History and Analysis
Debt Level: TECHM's debt to equity ratio (10.9%) is considered satisfactory.
Reducing Debt: TECHM's debt to equity ratio has increased from 5.4% to 10.9% over the past 5 years.
Debt Coverage: TECHM's debt is well covered by operating cash flow (179.5%).
Interest Coverage: TECHM earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Tech Mahindra's current dividend yield, its reliability and sustainability?
2.59%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TECHM's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.8%).
High Dividend: TECHM's dividend (2.59%) is low compared to the top 25% of dividend payers in the Indian market (3.34%).
Stability and Growth of Payments
Stable Dividend: TECHM's dividend payments have been volatile in the past 10 years.
Growing Dividend: TECHM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.5%), TECHM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TECHM's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
CP Gurnani (60yo)
no data
Tenure
₹224,990,000
Compensation
Mr. Chander Prakash Gurnani, also known as CP, serves as Non-Executive Non-Independent Director of Mahindra & Mahindra Limited since April 1, 2020. Mr. Gurnani has been the Chief Executive Officer at Tech ...
CEO Compensation Analysis
Compensation vs Market: CP's total compensation ($USD2.98M) is above average for companies of similar size in the Indian market ($USD1.21M).
Compensation vs Earnings: CP's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | no data | ₹224.99m | 0.81% ₹4.1b | |
| Chief Financial Officer | 2yrs | ₹11.63m | 0.0023% ₹11.7m | |
| Company Secretary & Compliance Officer | 3.17yrs | ₹7.18m | 0.00079% ₹4.0m | |
| Chief Operating Officer | 4.67yrs | no data | 0.011% ₹53.7m | |
| President & CTO | 4.5yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel | 1.08yrs | no data | no data | |
| Chief People Officer | 1.92yrs | no data | 0.00017% ₹860.9k | |
| President of Corporate Affairs & Business Head APAC | 1.42yrs | no data | 0.034% ₹174.0m | |
| Senior Vice President of MBT GmbH | no data | no data | no data |
2.0yrs
Average Tenure
60yo
Average Age
Experienced Management: TECHM's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | no data | ₹224.99m | 0.81% ₹4.1b | |
| Non-Executive Chairman | no data | no data | 0.022% ₹109.7m | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Director | 6.92yrs | ₹7.82m | 0.0034% ₹17.5m | |
| Independent Director | 0.83yr | no data | no data | |
| Non-Executive Director | 4.83yrs | ₹6.57m | no data | |
| Independent Director | 1.17yrs | no data | no data | |
| Independent Director | 6.92yrs | ₹50.66m | 0.00023% ₹1.2m | |
| Independent Director | no data | ₹7.26m | 0.0085% ₹42.9m | |
| Non-Executive Director | 0.75yr | no data | no data |
3.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: TECHM's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TECHM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Tech Mahindra Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Tech Mahindra Limited
- Ticker: TECHM
- Exchange: NSEI
- Founded: 1986
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₹506.423b
- Shares outstanding: 869.99m
- Website: https://www.techmahindra.com
Number of Employees
Location
- Tech Mahindra Limited
- Plot No. 1, Phase III
- Rajiv Gandhi Infotech Park
- Pune
- Maharashtra
- 411057
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532755 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Aug 2006 |
| TECHM | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Aug 2006 |
Biography
Tech Mahindra Limited provides information technology (IT) services and solutions in the Americas, Europe, India, and internationally. The company operates through IT Business and Business Processing Outsourcing (BPO) segments. It offers IT outsourcing, consulting, next generation, application outsourcing, network, infrastructure management, integrated engineering, BPO, platform, and mobile value added services. The company also provides consulting-led integrated portfolio services to telecom equipment manufacturers, telecom service providers, IT infrastructure service providers, and business process outsourcing service providers; and enterprise solutions services of IT and IT-enabled services. In addition, it offers IT services, such as IT enabled services, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions, and infrastructure management services. Further, the company provides big data, cloud computing, content delivery network, device testing and certification, digital enterprise, green and sustainability, long term evolution, Internet of Things, supply chain, smart grid and city, and spend management solutions. Additionally, it offers IT infrastructure cloud services; customer experience solutions; enterprise architecture services; enterprise resource planning, data and analytics, and other enterprise platforms; and DevOps solutions. The company also provides integrated engineering solutions; infrastructure management, mobility, networking, performance engineering, product life cycle management, and testing services; and enterprise security and risk management services. It serves insurance, banking and financial, manufacturing, telecommunication, transportation and logistics, engineering, entertainment, and public and government sectors; and retail and consumer goods industries. It has strategic partnership with Rackspace US, Inc. The company was founded in 1986 and is based in Pune, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 13:11 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.