Tech Mahindra Ltd. is a large-cap company from the IT software sector. The company offers customer-centric digital experiences. The company currently has a revenue of more than USD 6.2 billion and is spread across 70 countries catering to more than 1100 clients all over the world.
Tech Mahindra has two main segments of operation, namely, Information Technology and Business Processing Outsourcing. To learn more about the company, especially if you are considering investing in it, this blog is for you.
Tech Mahindra Financial Analysis
In the financial year 2023-24, the company earned a revenue of Rs 51,996 crores. The company boasts of having a market cap worth Rs 1,25,714.39 crores.
EBITDA earned by the company in FY2024 is Rs 4,965 crores. The company earned Rs 916 crores from other sources in 2024 which is lesser than the Rs 965 crores from the previous year. The PAT for this period was Rs 2358 cr.
The table below mentions the yearly growth of the company which is a must for investors to know to make informed decisions.
| Category (Yearly) | March 2023 (In Crores) | March 2024 (In Crores) |
| Revenue from Operations | 42,657.30 | 42099.30 |
| Net Profit | 3777.50 | 2128.60 |
| Basic Earnings Per Share | 38.69 | 21.75 |
Tech Mahindra Share Price
The Tech Mahindra share price chart will further exemplify the company’s position in the share market.
Tech Mahindra share price is trading around Rs 1,250+ as of May. The 52-week high was Rs 1400+ and the 52-week low was Rs 1000+. The earnings per share (EPS) TTM of the company, currently, is 26.66.
As of May 2024, promoter holding stood at 35.09%, Domestic Institutional Investors (DII) were at 26.69%, Foreign Institutional Investors held 24.25% and retail investors were at 11.07%.
Is Tech Mahindra a Good Investment Opportunity?
Despite the modest growth of the company, 12 share market analysts recommend investing in the company, 10 suggest that investors hold onto them for the future whereas 7 suggest selling them off. It is recommended that investors hold their positions as the stock is in a strong bullish trend.
The company posted a net profit of Rs 2,358 crores in the entire financial year of 2023-24. The company also has a low debt rate, the book value of each share has been increasing steadily for the past 2 years. The net income is predicted to increase in 2025 to Rs 4313.8 crores and Rs 5,795.6 crores in 2026.
As a result, this investment is more likely to give long-term returns.
Summing It Up
Tech Mahindra is a front-runner in the IT sector and is venturing into Artificial Intelligence. The company is also expecting strong revenue growth in the future with better profit margins to attract investors. Although the growth is slower than rival companies, Tech Mahindra has a promising future.