Brokerages upgrade Tech Mahindra on Q1 show, double-digit growth outlook

Inexpensive valuations provide support to the stock

The stock of the country’s fifth-largest listed software developer by market capitalisation, Tech Mahindra got a 7 per cent boost on Friday. The gains for the company were on account of better-than-expected June quarter performance with growth across key markets and verticals, robust deal wins and guidance of double-digit growth rates for FY22.

Its revenue growth at 3.9 per cent on a constant currency basis was led by the enterprise and communications segments. The new deal wins with a total contract value (TCV) of $815 million was in line with expectations though higher than its average quarterly deal win TCVs