Information Technology · NSE/BSE: TECHM
Tech Mahindra Limited
Computers - Software & Consulting
Market Cap ₹1.40L Cr
Verdict: Average
Quality Scores
Multi-Bagger
64/100
Compounder Quality
76/100
Management Credibility
78/100
Governance
96/100
Cash Flow Quality
92/100
AI Summary
Tech Mahindra is a Tier-1 Indian IT services provider under the Mahindra Group, specializing in communication, enterprise, and digital transformation. Over the last decade, sales have grown at a stable 8% CAGR, but the company has recently faced margin compression and a significant profit dip in FY24. With a market cap of ₹1,45,586 Cr, it maintains a strong dividend yield of 3.43% and a high dividend payout ratio. Management is currently undergoing a leadership transition and turnaround strategy to restore operating margins to the 15% range. The balance sheet remains robust with minimal debt,…
Top Opportunities
- Almost debt-free balance sheet
- Superior cash flow conversion (CFO/PAT > 1.0)
- High dividend yield (3.43%)
Top Risks
- Weak 3-year sales CAGR of 2%
- Severe margin pressure in FY24
- High dependence on the communication vertical
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