Tech Mahindra share price has shot up over 9 per cent in the opening bell today — surging from its Thursday close of ₹1127.80 per stock levels to ₹1230.55 per stock mark (at 10:38 AM). According to stock market experts, this rise can be attributed to two strong reasons — strong first quarter numbers and expected business growth in next one to two years due to India made 5G roll out. They said that Tech Mahindra shares are still positive and one can keep this counter in one’s portfolio for 2 to 3 months target of ₹1500.
Tech Mahindra share: Reasons for rise
Speaking on the reason for Tech Mahindra share price rally Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Tech Mahindra has reported strong quarterly numbers against other IT companies and its business is expected to remain sustained as the Government of India (GoI) has recently announced that 5G roll out in India will be completely India made. That means telecom companies would be investing heavily in next one to two years in developing the telecom infrastructure for expected 5G roll out, and Tech Mahindra will have a major share in that business. Stock market investors in India were waiting for the Q1 FY 2021-22 results of Tech Mahindra but FIIs have been keeping an eye on it since the 5G roll out announcement mentioned above.”
Avinash Gorakshkar of Profitmart Securities went on to add that this rise in Tech Mahindra stock price is due to the heavy buying by both Foreign Institutional Investors (FIIS) and Domestic Institutional Investors (DIIs). He said that Tech Mahindra is a portfolio stock and one should keep this stock in one’s portfolio keeping long-term time-horizon.
Tech Mahindra share price target
Unveiling investment strategy in Tech Mahindra shares; Ravi Singhal, Vice Chairman at GCL Securities said, “One can buy Tech Mahindra stocks at current levels and keep on accumulating till it is sustaining above ₹1100 levels. The stock is expected to go up to ₹1500 per stock mark in the next 2 to 3 months or say by Diwali 2021.” However, Ravi Singhal of GCL Securities strictly advised investors to maintain stop loss at ₹1100 while taking position in the Tech Mahindra counter.
Tech Mahindra’s Q1FY22 operating performance was ahead of expectations. Revenues grew 4.1 per cent QoQ (3.9% CC) to $1,384 mn, led by the Enterprise business (4.5 per cent) and Communication, Media & Entertainment (2.9 per cent).
Net new deal wins of the company were robust with a TCV of $815 mn, split across CME ($352 mn) and Enterprise ($463 mn). Despite strong deal closures in the last two quarters, the deal pipeline remains healthy.
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