Tech Mahindra fell 0.93% to Rs 544.75 at 13:09 IST on BSE on reports that a foreign brokerage downgraded the stock from buy to neutral.
Meanwhile, the S&P BSE Sensex was up 284.75 points or 1.06% at 27,117.41.
On BSE, so far 5.13 lakh shares were traded in the counter as against average daily volume of 4.40 lakh shares in the past one quarter.
The stock hit a high of Rs 554 and a low of Rs 540.40 so far during the day. The stock had hit a 52-week low of Rs 496.80 on 24 June 2014. The stock had hit a record high of Rs 749.50 on 2 February 2015.
The stock had underperformed the market over the past one month till 17 June 2015, sliding 11.03% compared with Sensex's 1.8% fall. The scrip had also underperformed the market in past one quarter, declining 23.33% as against Sensex's 6.62% fall.
The large-cap IT services provider has equity capital of Rs 481.82 crore. Face value per share is Rs 5.
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The foreign brokerage reportedly said that Tech Mahindra is likely to see near-zero organic revenue growth in FY 2016. The brokerage also cut its FY 2016/17 earnings per share estimates on Tech Mahindra and lowered the valuation multiple to 14 times versus 15 times earlier on risks from top-10 client concentration and high telecom exposure, as per reports. Top-10 clients contribute 45% to Tech Mahindra's revenues, reports added.
On consolidated basis, Tech Mahindra's net profit dropped 41.38% to Rs 472.01 crore on 6.34% growth in net sales to Rs 6116.79 crore in Q4 March 2015 over Q3 December 2014.
Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering solutions.
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