NSEI:TECHM

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Executive Summary

Tech Mahindra Limited provides information technology (IT) services and solutions in the Americas, Europe, India, and internationally. More Details


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

TECHMIndustryMarket
7 Day-4.6%-2.9%-0.7%
30 Day6.4%11.7%8.4%
90 Day18.4%21.4%23.0%
1 Year36.1%30.7%72.8%69.3%19.5%17.3%
3 Year82.7%67.9%98.1%87.7%8.9%3.6%
5 Year129.2%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

Valuation

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

NamePositionTenureCompensationOwnership
Chander Gurnani
MD, CEO & Directorno data₹287.11m0.80%
₹ 7.2b
Manoj Bhat
Chief Financial Officer2.58yrs₹11.01m0.0068%
₹ 60.7m
Anil Khatri
Company Secretary & Compliance Officer3.75yrs₹7.13m0.0010%
₹ 9.2m
L. Ravichandran
President & COO5.25yrsno data0.011%
₹ 94.1m
Atul Kunwar
President & CTO5.08yrsno datano data
Kaustubh Vaidya
Head of Investor Relationsno datano datano data
Vineet Vij
General Counsel1.67yrsno datano data
Vivek Agarwal
Head of Corporate Development and Global Head for Healthcare & Financial Servicesno datano data0.0023%
₹ 20.4m
Harshvendra Soin
Global Chief People Officer2.5yrsno data0%
₹ 0
Sujit Baksi
President of Corporate Affairs & Business Head APAC2yrsno data0.033%
₹ 289.3m
Marcus Schüler
Senior Vice President of MBT GmbHno datano datano data
Andy Ranaweera
Senior Vice President of Peoplecareno datano datano data

2.6yrs

Average Tenure

61yo

Average Age

Experienced Management: TECHM's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chander Gurnani
MD, CEO & Directorno data₹287.11m0.80%
₹ 7.2b
Anand Mahindra
Non-Executive Chairmanno datano data0.022%
₹ 192.2m
Haigreve Khaitan
Independent Director1.42yrs₹4.92mno data
Thothala Manoharan
Independent Director7.5yrs₹9.14m0.0034%
₹ 30.0m
Shikha Sharma
Independent Director1.42yrs₹5.48mno data
Vankipuram Parthasarathy
Non-Executive Director5.42yrs₹8.19mno data
Mukti Khaire
Independent Director1.75yrs₹9.20mno data
M. Rao
Independent Director7.5yrs₹6.68m0%
₹ 0
Meleveetil Damodaran
Independent Directorno data₹7.94m0.0084%
₹ 75.1m
Anish Shah
Non-Executive Director1.33yrs₹4.22mno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532755BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2006
TECHMNSEI (National Stock Exchange of India)YesEquity SharesININRAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 12:03
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.