Overall Fundamental outlook

Business Operations:

Sector: Technology
Industry: Information Technology Services

Tech Mahindra Limited provides information technology services and solutions in the Americas, Europe, India, and internationally. The company operates through Information technology (IT) Business and Business Processing Outsourcing (BPO) segments. It offers cloud consulting, business excellence, digital supply chain, Application Development Maintenance, intelligent automation, testing, performance engineering, data analytics, and artificial intelligence services. The company also provides infrastructure and cloud services, including cloud, FLEX Digital workplace, and data center; engineering and network services; digital enterprise applications; and business process, cyber security, blockchain, and metaverse services, as well as customer experience and sustainability as a service. It serves communication; banking and financial services; energy and utilities; healthcare and life sciences; hi-tech; insurance; manufacturing; media and entertainment; private equity; oil and gas; professional service; and travel, transportation, hospitality, and logistic sectors. The company was incorporated in 1986 and is based in Pune, India.

Revenue projections:

Revenue projections for TECHM
Revenue projections for TECHM

Revenues for TECHM are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

Financial Ratios:

currentRatio 1.831000
forwardPE 20.696615
debtToEquity 6.992000
earningsGrowth -0.045000
revenueGrowth 0.051000
grossMargins 0.328420
operatingMargins 0.121420
trailingEps 50.520000
forwardEps 64.670000

A current ratio of 1.831 for Tech Mahindra Limited implies that the company has ample liquidity to meet its short-term debts. Tech Mahindra Limited's cash reserves and current assets should easily cover these obligations, highlighting its financial stability and ability to manage short-term liabilities.
TECHM's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
Tech Mahindra Limited's low earnings and revenue growth suggest that its profits could shrink. This points to a potential downturn in the company's financial outlook and may indicate challenges in maintaining profitability.
TECHM's negative gross and operating margins point to financial difficulties, as the company is unable to generate profit from its core operations or production. This could signal broader problems in cost management or declining sales.
TECHM's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting TECHM to generate stronger earnings compared to the previous financial year.

Price projections:

Price projections for TECHM
Price projections for TECHM

TECHM's stock price has consistently been near the lower edge of expected values, indicating potential struggles in meeting growth projections. This trend may reflect a cautious market sentiment toward the company.

Recommendation changes over time:

Recommendations trend for TECHM
Recommendations trend for TECHM


Tech Mahindra Limited has been receiving a buy bias from analysts, signaling strong confidence in the stock's future performance. This positive outlook might drive investors to view Tech Mahindra Limited as an attractive option for their portfolios, positioning the company as a stable and profitable investment choice.