Tech Mahindra Limited

Industry Profile :. IT industry in India is expected to touch $300 Billion by 2020. The sector contributed 9.5% in Indian GDP. TCS, leader in Indian IT, Contributed 10.2% of industry. Indian IT is largest sourcing destination for Information technology, accounting 67% of global IT, giving employment to nearly 10 million workforce. This industry changed perception of India and by transforming the economy of India. The sector is big reason for development of Education sector in India.

Out of Four segment of IT Industry, software and BPO are dominating the segment. There is not much hardware related business in India.

All due to this, start ups like ola, Snapdeal, flipkart developed and growing in India, making new opportunity for employment.

Company Profile :. The company started as Joint venture in between British Telecom and Mahindra and Mahindra in 1986. The company is provider of IT solutions, BPO, Networking Technology to mainly Telecom sector. After 2000 company expanded its foot prints by acquisition of various global leader like Satyam. Today the company has presence in more than 50 countries and more than 500 clients.

Shareholding Pattern :  MAHINDRA AND MAHINDRA GROUP,  Promoter holding 36.20%. 200+ mutual Funds holding 6.75% Insurance Companies Holding 5.92%, out of which LIC holds 3.62%. Foreign investors holding 32.5% remaining is with public.

Financials and Ratios :    

 2010-112011-122012-132013-142014-152015-162016-17
Revenue5092.105310.706001.9016295.1019162.7020969.8023165.40
Net Profit696.70460.60652.502685.502256.2032203047.30
NPM14.038.7810.8716.4811.7715.3513.15
EPS55.8136.2751.10115.4923.5833.4031.37
Book Value268.57270.05326.50367.82117.15140.03173.48
Dividend Payout7.3211.159.8217.3825.6736.0945.24
Dividend Per Share445206129
ROE20.5813.3715.6031.2620.0423.7518.04
ROCE15.309.9113.3725.5217.6021.0416
ROA7.2511.458.9818.2213.2515.5912.84
Debt to Equity0.350.330.26000.010.01
Asset Turnover81.6682.6282.68110.55112.61101.5497.60

Future Prospect :  IT is business to which you can’t ignore and tech mahindra is one where telecommunications is one important contributor which is going from bad patch. But that is the reason why the stock will be available at good price. If your view is for long term, then no problem to buy.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter