Tech Mahindra Shares Rise 3% After Q2 Results, Jefferies Upgrades Stock
Tech Mahindra set out an expansion in a quarterly results development.
· NDTV Profit, Business Today Mkts
Tech Mahindra reported its 12th consecutive quarter of margin expansion, prompting Jefferies to upgrade the stock to Hold and Kotak Securities to raise its target price.
The analysis
Tech Mahindra reported movement of 3%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +7.4% on the day at ₹1,772.00, and has returned +10.1% over three months. It is trading close to its 52-week high, so expectations were already elevated going in. The it sector has moved +2.9% over the same period, so Tech Mahindra is running 7.2 points ahead of its peers.
For Tech Mahindra, the question is how much of this is already reflected in the price and how much re-rates the it peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is TECHM.
- Sector exposure: IT.
- The immediate tone of coverage reads positive.
In this story
Related coverage
Q2 impact: TechM shares gain 5% as analysts raise earnings estimate, target
Nifty IT soars 14% in 6 days on Q2 earnings boost; TechM, Wipro, TCS shine
Tech Mahindra Q2 profit rises 32.7% to ₹1,586 crore; revenue up 15.6%
Tech Mahindra Q2 preview: PAT may jump 30-40% YoY; firm to mull bonus issue
Q2 Results Live: Tata Communications Profit Soars Over 86%; Tips Music Declares Dividend