Tech Mahindra Share Price: Analysts cut price targets for Tech Mahindra | Jobs Vox

Brokerages cut their price targets due to weaker-than-expected margin performance in the June quarter.

The IT services company reported a 24.8% sequential decline in net profit to INR 1,132 crore.

CLSA downgraded the stock to Underperform from Outperform and cut the price target to ₹1,070 from ₹1,150.

“While management is hopeful of a recovery, we believe Tech Mahindra’s low margin makes a quick recovery both difficult and vulnerable to long-term implications, more so given the macro risks,” CLSA said.

“Margin volatility could also weigh on investor interest despite relatively cheap stock valuations,” CLSA said.

Nomura lowered its price target to INR 1,270 from INR 1,350 while maintaining buy. Kotak Institutional Equities continued to buy and lowered the target price to ₹ 1,200 from ₹ 1,300.

maintained buy and cut price target to ₹ 1,210 from ₹ 1,340.

Stocks are cheap and probably the only reason to remain constructive, says Kotak Institutional. Prabhudas Lilladher cut the price target to INR 1,042 from INR 1,065 with a hold rating.

Morgan Stanley has maintained an overweight recommendation on the stock with a price target of INR 1,100. While Morgan Stanley cut valuations for Tech Mahindra, the brokerage maintained its overweight view as the company has narrowed the growth gap with peers, has much higher operating leverage than peers and is one of the cheapest valuations among large-caps. .