Tech Mahindra Limited

NSEI:TECHM Stock Report

Market Cap: ₹1.2t

Tech Mahindra Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: TECHM (₹1357.8) is trading above our estimate of future cash flow value (₹1091.11)

Significantly Below Future Cash Flow Value: TECHM is trading above our estimate of future cash flow value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TECHM. This is calculated by dividing TECHM's market cap by their current earnings.
What is TECHM's PE Ratio?
PE Ratio26x
Earnings₹46.24b
Market Cap₹1.20t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TECHM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.2x
LTM LTIMindtree
27.8x17.05%₹1.3t
507685 Wipro
15.9x6.13%₹2.1t
PERSISTENT Persistent Systems
40.8x19.87%₹706.4b
526299 Mphasis
24.3x13.14%₹437.9b
TECHM Tech Mahindra
26x19.79%₹1.2t

Price-To-Earnings vs Peers: TECHM is good value based on its Price-To-Earnings Ratio (26x) compared to the peer average (27.2x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DEVIT Dev Information Technology
1.9xn/aUS$14.36m
ROXHITECH ROX Hi-Tech
4xn/aUS$8.42m
541890 Space Incubatrics Technologies
0.8xn/aUS$874.42k
504375 IDream Film Infrastructure
1.9xn/aUS$494.41k
TECHM 26.0xIndustry Avg. 21.1xNo. of Companies26PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TECHM is expensive based on its Price-To-Earnings Ratio (26x) compared to the Indian IT industry average (21.5x).

Price to Earnings Ratio vs Fair Ratio

What is TECHM'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.

TECHM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ratio33.3x

Price-To-Earnings vs Fair Ratio: TECHM is good value based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (33.3x).

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 TECHM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,357.80
₹1,744.13
+28.45%
13.06%₹2,350.00₹1,180.00n/a40
Feb ’27₹1,717.30
₹1,768.43
+2.98%
11.71%₹2,350.00₹1,220.00n/a42
Jan ’27₹1,607.70
₹1,602.50
-0.32%
11.60%₹1,950.00₹1,110.00n/a42
Dec ’26₹1,529.50
₹1,577.74
+3.15%
11.52%₹1,950.00₹1,110.00n/a42
Nov ’26₹1,424.40
₹1,572.12
+10.37%
11.68%₹1,950.00₹1,110.00n/a42
Oct ’26₹1,416.00
₹1,598.38
+12.88%
13.94%₹2,020.00₹1,110.00n/a42
Sep ’26₹1,505.50
₹1,627.43
+8.10%
14.01%₹2,020.00₹1,110.00n/a42
Aug ’26₹1,438.80
₹1,631.14
+13.37%
13.74%₹2,020.00₹1,110.00n/a42
Jul ’26₹1,671.20
₹1,576.71
-5.65%
14.59%₹2,123.00₹1,050.00n/a42
Jun ’26₹1,573.90
₹1,538.05
-2.28%
13.69%₹1,976.00₹1,050.00n/a42
May ’26₹1,503.00
₹1,548.77
+3.05%
14.49%₹2,000.00₹1,050.00n/a43
Apr ’26₹1,395.15
₹1,648.55
+18.16%
14.21%₹2,000.00₹1,050.00n/a42
Mar ’26₹1,487.85
₹1,715.61
+15.31%
13.19%₹2,030.00₹1,050.00n/a41
Feb ’26₹1,646.40
₹1,720.79
+4.52%
13.22%₹2,030.00₹1,050.00₹1,717.3042
Jan ’26₹1,703.85
₹1,673.54
-1.78%
14.24%₹2,000.00₹1,050.00₹1,607.7041
Dec ’25₹1,712.30
₹1,665.49
-2.73%
14.13%₹2,000.00₹1,050.00₹1,529.5041
Nov ’25₹1,603.65
₹1,659.78
+3.50%
14.04%₹2,000.00₹1,050.00₹1,424.4041
Oct ’25₹1,625.40
₹1,518.83
-6.56%
14.94%₹1,905.00₹1,005.00₹1,416.0042
Sep ’25₹1,636.50
₹1,478.97
-9.63%
14.53%₹1,810.00₹1,005.00₹1,505.5042
Aug ’25₹1,544.45
₹1,476.00
-4.43%
14.69%₹1,810.00₹1,005.00₹1,438.8041
Jul ’25₹1,472.10
₹1,314.30
-10.72%
15.26%₹1,715.00₹950.00₹1,671.2041
Jun ’25₹1,228.45
₹1,270.04
+3.39%
12.77%₹1,589.86₹930.00₹1,573.9042
May ’25₹1,263.50
₹1,270.04
+0.52%
12.77%₹1,589.86₹930.00₹1,503.0042
Apr ’25₹1,244.55
₹1,282.24
+3.03%
12.50%₹1,555.00₹950.00₹1,395.1538
Mar ’25₹1,271.80
₹1,293.21
+1.68%
12.40%₹1,555.00₹950.00₹1,487.8538
Feb ’25₹1,312.50
₹1,289.24
-1.77%
12.90%₹1,555.00₹950.00₹1,646.4037
₹1.74k
Fair Value
22.2% undervalued intrinsic discount
40
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/27 09:40
End of Day Share Price 2026/02/27 00:00
Earnings2025/12/31
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Tech Mahindra Limited is covered by 77 analysts. 40 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Ashwin MehtaAmbit Capital
Sushovon NayakAnand Rathi Shares and Stock Brokers Limited