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Tech Mahindra Limited

TECHMIT - Software

Fundamental Score

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Tech Mahindra Limited Share Price & Market Analysis

Current Market Price (CMP)
1452.40
No change data available
Market Cap
1.42L (Cr)
Industry
IT - Software

Profitability Metrics

Poor

Return on Equity

14.62%
Good

Return on Capital Employed

18.56%
Excellent

Operating Profit Margin (5Y)

14.14%
Excellent

Dividend Yield

3.10%

Valuation Metrics

Poor

Price to Earnings

31.33x

Market Capitalization

1.42L (Cr)

Industry P/E

29.96x

Growth Metrics

Excellent

YoY Quarterly Profit Growth

33.95%
Poor

YoY Quarterly Sales Growth

2.66%
Poor

Sales Growth (5Y)

7.52%
Poor

EPS Growth (5Y)

-0.65%
Poor

Profit Growth (5Y)

-0.38%

Financial Health

Excellent

Debt to Equity

0.07x
Excellent

Interest Coverage

19.58x
Excellent

Free Cash Flow (5Y)

27.52K (Cr)

Ownership Structure

Average

Promoter Holding

35.00%
Excellent

FII Holding

23.28%
Excellent

DII Holding

32.13%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
35.00%
Promoter Holding
1.42L (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of TECHM across key market metrics for learning purposes.

Positive Indicators

8 factors identified

Excellent ROCE Performance (18.56%)

Observation: Superior returns on capital employed across business operations.

Analysis: ROCE >15% demonstrates efficient capital deployment and strong operational performance. This indicates quality business fundamentals.

Robust Profit Growth (33.95%)

Observation: Strong year-over-year profit expansion demonstrates business momentum.

Analysis: Profit growth >20% indicates effective execution and market opportunity capture. This suggests positive business trajectory.

Conservative Debt Levels (D/E: 0.07)

Observation: Low leverage provides financial flexibility and reduced risk.

Analysis: Conservative debt structure offers resilience during economic downturns and flexibility for growth investments.

Strong Interest Coverage (19.58x)

Observation: Earnings comfortably cover interest obligations.

Analysis: Interest coverage >5x indicates low financial distress risk and strong debt servicing capability.

Strong Cash Generation (₹27515.60 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Strong Institutional Confidence (FII+DII: 55.41%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Attractive Dividend Yield (3.10%)

Observation: Healthy dividend yield provides income component to returns.

Analysis: Dividend yield >3% offers income potential while indicating cash flow strength and shareholder-friendly policies.

Risk Factors

3 factors identified

Weak Earnings Growth (-0.65% CAGR)

Observation: Below-average 5-year EPS growth performance.

Analysis: Low EPS growth may not keep pace with inflation. Consider growth catalysts and competitive positioning.

Stagnant Profit Growth (-0.38% CAGR)

Observation: Limited 5-year profit growth trajectory.

Analysis: Low profit growth may indicate scalability challenges or market maturity. Assess transformation initiatives.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

📊 Educational Market Overview

Disclaimer: The ratings and scores are generated algorithmically from publicly available market data and are provided for educational and informational purposes only. They do not constitute investment advice, recommendation, or solicitation to buy/sell any securities.

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Financial Statements

Comprehensive financial data for Tech Mahindra Limited

About TECHM

Company Details

Symbol:TECHM
Industry:IT - Software
Sector:Computers - Software & Consulting

Market Information

Market Cap:1.42L (Cr)
P/E Ratio:31.33
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:3.10%

TECHM Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)14.62%
Return on Capital Employed18.56%
Operating Profit Margin (5Y)14.14%
Debt to Equity Ratio0.07
Interest Coverage Ratio19.58

Growth & Valuation

Sales Growth (5Y)7.52%
Profit Growth (5Y)-0.38%
EPS Growth (5Y)-0.65%
YoY Quarterly Profit Growth33.95%
YoY Quarterly Sales Growth2.66%

Frequently Asked Questions

What is the current price of TECHM?

TECHM is currently trading at ₹1452.40 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of TECHM shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of TECHM and what does it mean?

TECHM has a P/E ratio of 31.33x compared to the industry average of 29.96x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹31 for every ₹1 of annual earnings. This is higher than the industry average, suggesting either growth premium or potential overvaluation.

How is TECHM performing according to Bull Run's analysis?

TECHM has a Bull Run fundamental score of 38.2/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 14.62%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does TECHM belong to?

TECHM operates in the IT - Software industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting Tech Mahindra Limited. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for TECHM?

TECHM has an ROE of 14.62%, which shows decent profitability but room for improvement. Return on Equity measures how efficiently Tech Mahindra Limited generates profits from shareholders' equity. An ROE of 15% means the company generates ₹15 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is TECHM's debt-to-equity ratio and what does it indicate?

TECHM has a debt-to-equity ratio of 0.07, which indicates conservative financing with low financial risk. This means the company has ₹7 of debt for every ₹100 of equity. This conservative approach provides financial stability but may limit growth potential.

What is TECHM's dividend yield and is it a good dividend stock?

TECHM offers a dividend yield of 3.10%, which means you receive ₹3.10 annual dividend for every ₹100 invested. This provides moderate dividend income along with potential capital appreciation. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has TECHM grown over the past 5 years?

TECHM has achieved 5-year growth rates of: Sales Growth 7.52%, Profit Growth -0.38%, and EPS Growth -0.65%. These growth metrics show the company's ability to expand its business and improve profitability over time. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in TECHM and why does it matter?

Promoters hold 35.00% of TECHM shares, with 0.00% of promoter shares pledged. This promoter holding level suggests balanced ownership between management and public shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: -0.01%.

How does TECHM compare with its industry peers?

TECHM trades at P/E 31.33x vs industry average 29.96x, with ROE of 14.62% and ROCE of 18.56%. The stock trades at a premium to industry average, which may be justified by superior fundamentals. Peer comparison helps identify whether TECHM is outperforming its competitive set in profitability, growth, and valuation metrics.

What is TECHM's market capitalization and what category does it fall into?

TECHM has a market capitalization of ₹142272 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for TECHM?

Key ratios for TECHM: ROE 14.62% (Good), ROCE 18.56%, P/E 31.33x, Debt-to-Equity 0.07, Interest Coverage 19.58x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is TECHM stock and what is its beta?

TECHM has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for TECHM?

TECHM has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹1452.40, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in TECHM?

Key risks for TECHM include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 0.07), and operational challenges. The stock has a Fundamental Score of 38.2/100, indicating higher risk requiring thorough due diligence. Sector-specific risks in IT - Software include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is TECHM's operating profit margin and how has it trended?

TECHM has a 5-year average Operating Profit Margin (OPM) of 14.14%, which is good and shows decent operational efficiency. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. Monitor margin trends to assess management's ability to control costs and improve efficiency. Compare with industry peers to understand relative performance.

How is TECHM's quarterly performance in terms of sales and profit growth?

TECHM's recent quarterly performance shows YoY Sales Growth of 2.66% and YoY Profit Growth of 33.95%. Growth rates indicate the current business trajectory and market demand. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in TECHM?

TECHM has FII holding of 23.28% and DII holding of 32.13%, totaling 55.41% institutional ownership. High institutional holding indicates professional validation of business quality and growth prospects. Significant FII holding suggests global investor confidence and potential for index inclusion. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.