Tech Mahindra Share Price Surges 9%: Is It The Right Time To Invest?

Exciting news for investors as Tech Mahindra, a leading tech company, sees a whopping 9% rise in its share price after a fantastic Q1 performance. However, before jumping in, let's explore what this means and whether it's a good time to invest.

Tech Mahindra's Share Price:
Today, Tech Mahindra's share price closed at Rs 1,100.30. It's down 13.38% from its highest point of Rs 1,270.35 on July 17, 2023, but still up by 11.94% from its lowest price of Rs 982.95 on April 28 this year.

The Impact of Q1 Performance:
The recent dip in Tech Mahindra's share price is linked to its Q1 FY24 profit, which dropped by 39% to Rs 693 crore. Additionally, the company's earnings before interest and tax (EBIT) margins declined to 6.80% from 11% compared to the previous year.

Brokerages' Views:
Axis Securities has given a 'Sell' rating with a target price of Rs 995. They pointed out that Q1 revenue of Rs 13,159 crore declined by 4.10% compared to the previous quarter.

Choice Broking downgraded Tech Mahindra to 'Underperform' with a target price of Rs 870, suggesting a possible downside of 20.93%. They remain cautious due to delays in the approval cycle, but believe H2 could bring recovery.

Tech Mahindra's Positives:
Amid challenges, Tech Mahindra is optimistic about the future. They have a strong pipeline of opportunities across geographies and verticals. Recently, they were chosen by a major US retail player for Service desk management, using AI and transformative bot-first technology.

The company is actively working to reduce costs and improve margins by optimizing their structure and divesting non-strategic portfolios.

Before investing, remember the stock market carries risks. Take time to research, seek advice, and understand your own financial goals. Happy investing!