Tech Mahindra
Market Cap
₹890.3b
Last Updated
2021/01/21 12:03 UTC
Data Sources
Company Financials +
Executive Summary
Tech Mahindra Limited provides information technology (IT) services and solutions in the Americas, Europe, India, and internationally. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TECHM's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-4.6%
TECHM
-2.9%
IN IT
-0.7%
IN Market
1 Year Return
30.7%
TECHM
69.3%
IN IT
17.3%
IN Market
Return vs Industry: TECHM underperformed the Indian IT industry which returned 72.1% over the past year.
Return vs Market: TECHM exceeded the Indian Market which returned 19.1% over the past year.
Shareholder returns
| TECHM | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.6% | -2.9% | -0.7% |
| 30 Day | 6.4% | 11.7% | 8.4% |
| 90 Day | 18.4% | 21.4% | 23.0% |
| 1 Year | 36.1%30.7% | 72.8%69.3% | 19.5%17.3% |
| 3 Year | 82.7%67.9% | 98.1%87.7% | 8.9%3.6% |
| 5 Year | 129.2%100.9% | 148.3%125.7% | 81.8%67.9% |
Long-Term 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
4 days ago | Simply Wall St
Is Tech Mahindra Limited's(NSE:TECHM) Recent Stock Performance Tethered To Its Strong Fundamentals?1 month ago | Simply Wall St
Shareholders Are Loving Tech Mahindra Limited's (NSE:TECHM) 1.6% Yield1 month ago | Simply Wall St
If You Had Bought Tech Mahindra (NSE:TECHM) Stock Three Years Ago, You Could Pocket A 89% Gain TodayValuation
Is Tech Mahindra undervalued compared to its fair value and its price relative to the market?
22.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TECHM (₹1004.7) is trading above our estimate of fair value (₹432.6)
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 (22x) compared to the IN IT industry average (21.9x).
PE vs Market: TECHM is poor value based on its PE Ratio (22x) compared to the Indian market (19.4x).
Price to Earnings Growth Ratio
PEG Ratio: TECHM is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: TECHM is overvalued based on its PB Ratio (3.7x) compared to the IN IT industry average (1.5x).
Next Steps
Future Growth
How is Tech Mahindra forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?
14.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TECHM's forecast earnings growth (14.2% per year) is above the savings rate (7%).
Earnings vs Market: TECHM's earnings (14.2% per year) are forecast to grow slower than the Indian market (25.3% per year).
High Growth Earnings: TECHM's earnings are forecast to grow, but not significantly.
Revenue vs Market: TECHM's revenue (9.8% per year) is forecast to grow slower than the Indian market (12.2% per year).
High Growth Revenue: TECHM's revenue (9.8% 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 (19.4%).
Next Steps
Past Performance
How has Tech Mahindra performed over the past 5 years?
9.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TECHM has high quality earnings.
Growing Profit Margin: TECHM's current net profit margins (10.6%) are lower than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: TECHM's earnings have grown by 9.8% 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 (-9.8%) over the past year, making it difficult to compare to the IT industry average (-0.8%).
Return on Equity
High ROE: TECHM's Return on Equity (16%) 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 (₹239.0B) exceed its short term liabilities (₹99.9B).
Long Term Liabilities: TECHM's short term assets (₹239.0B) exceed its long term liabilities (₹41.6B).
Debt to Equity History and Analysis
Debt Level: TECHM's debt to equity ratio (6.8%) is considered satisfactory.
Reducing Debt: TECHM's debt to equity ratio has increased from 4.6% to 6.8% over the past 5 years.
Debt Coverage: TECHM's debt is well covered by operating cash flow (457.7%).
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 current dividend yield, its reliability and sustainability?
1.49%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TECHM's dividend (1.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).
High Dividend: TECHM's dividend (1.49%) is low compared to the top 25% of dividend payers in the Indian market (1.81%).
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 low payout ratio (11%), TECHM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TECHM's dividends in 3 years are forecast to be well covered by earnings (40.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
CP Gurnani (61 yo)
no data
Tenure
₹287,110,000
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 ($USD3.94M) is above average for companies of similar size in the Indian market ($USD956.06K).
Compensation vs Earnings: CP's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | no data | ₹287.11m | 0.80% ₹ 7.2b | |
| Chief Financial Officer | 2.58yrs | ₹11.01m | 0.0068% ₹ 60.7m | |
| Company Secretary & Compliance Officer | 3.75yrs | ₹7.13m | 0.0010% ₹ 9.2m | |
| President & COO | 5.25yrs | no data | 0.011% ₹ 94.1m | |
| President & CTO | 5.08yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel | 1.67yrs | no data | no data | |
| Head of Corporate Development and Global Head for Healthcare & Financial Services | no data | no data | 0.0023% ₹ 20.4m | |
| Global Chief People Officer | 2.5yrs | no data | 0% ₹ 0 | |
| President of Corporate Affairs & Business Head APAC | 2yrs | no data | 0.033% ₹ 289.3m | |
| Senior Vice President of MBT GmbH | no data | no data | no data | |
| Senior Vice President of Peoplecare | no data | no data | no data |
2.6yrs
Average Tenure
61yo
Average Age
Experienced Management: TECHM's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | no data | ₹287.11m | 0.80% ₹ 7.2b | |
| Non-Executive Chairman | no data | no data | 0.022% ₹ 192.2m | |
| Independent Director | 1.42yrs | ₹4.92m | no data | |
| Independent Director | 7.5yrs | ₹9.14m | 0.0034% ₹ 30.0m | |
| Independent Director | 1.42yrs | ₹5.48m | no data | |
| Non-Executive Director | 5.42yrs | ₹8.19m | no data | |
| Independent Director | 1.75yrs | ₹9.20m | no data | |
| Independent Director | 7.5yrs | ₹6.68m | 0% ₹ 0 | |
| Independent Director | no data | ₹7.94m | 0.0084% ₹ 75.1m | |
| Non-Executive Director | 1.33yrs | ₹4.22m | no data |
3.6yrs
Average Tenure
61.5yo
Average Age
Experienced Board: TECHM's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TECHM insiders have sold more shares than they have bought 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: ₹890.267b
- Shares outstanding: 873.28m
- 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 Outso...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 12:03 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| 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.