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Sharp stock gains, 5G uncertainty cap further upsides for Tech Mahindra

Improving margin trajectory, enterprise segment growth are positives

Tech Mahindra
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The company hopes to get a higher share of the enterprise shift to digitisation and is developing products and platforms for the same

Yash Upadhyaya
Shares of IT major Tech Mahindra hit a fresh all-time high on Tuesday on expectations of improving margin trajectory, steady sales growth led by a robust order book and potential 5G growth opportunities. Tech Mahindra’s margin performance has been volatile over the years, unlike other Tier 1 peers and has remained a key concern for investors. 

The software services exporter has guided for a 15 per cent margin at the Ebit or earnings before interest and taxes level in FY22. This is over 100-130 basis points above what the street has been working with and thus was positive for the

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