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Tech Mahindra slips after foreign brokerage maintains 'underweight' rating

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Capital Market
Last Updated : Jun 24 2015 | 2:13 PM IST

Tech Mahindra fell 1.20% to Rs 547 at 12:59 IST on BSE on reports that a foreign brokerage has maintained its 'underweight' stance on the stock.

Meanwhile, the BSE Sensex was up 109.69 points, or 0.39%, to 27,914.06.

On BSE, so far 96,000 shares were traded in the counter, compared with an average volume of 4.12 lakh shares in the past one quarter.

The stock hit a high of Rs 552 and a low of Rs 545.65 so far during the day. The stock hit a record high of Rs 749.50 on 2 February 2015. The stock hit a 52-week low of Rs 496.80 on 24 June 2014.

The stock had underperformed the market over the past one month till 23 June 2015, falling 16.78% compared with 0.55% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 15.73% as against Sensex's 1.38% fall.

The large-cap IT services provider has an equity capital of Rs 481.88 crore. Face value per share is Rs 5.

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The brokerage reportedly said that growth challenges in Tech Mahindra's telecom industry vertical and its weak enterprise business will lead to lower earnings. The company's margins will surprise the consensus negatively going ahead, the brokerage 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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First Published: Jun 24 2015 | 12:55 PM IST

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