Tech Mahindra (TechM) has over 1.2 lakh employees across 90 countries serving 1000+ clients with higher exposure to telecom (40% of revenues).
TechM’s share price has grown by ~1.7x over the past five years (from ~₹ 612 in March 2018 to ~₹ 1,085 levels in March 2023).
We value TechM at ₹ 1130 i.e., 13x P/E on FY25E EPS
Apart from TechM, in our IT coverage we also like Infosys.
|Particulars||FY20||FY21||FY22||5 Year CAGR(FY17-FY22)||FY23E||FY24E||FY25E||3 Year CAGR (FY22-FY25E)|
|EBITDA Margin (%)||15.5||18.1||18.0||-||15.4||15.7||16.9||-|
|(| Crore)||Old||New||% Change||Old||New||% Change||Old||New||% Change|
|EBIT Margin (%)||11.7||11.7||0 bps||12.8||12.5||-30 bps||13.5||13.9||40 bps|
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