Tech Mahindra shares zoom 4% after CLSA upgrades stock to outperform, hikes TP to Rs 1,749

This target price indicates an upside potential of 11% from the stock’s closing price on Monday.

Following a recent price correction, CLSA has upgraded the stock, noting initial signs of execution on EBIT margin improvement.

Additionally, the global brokerage firm mentioned in its note that the lack of a major uptick in order bookings lately has been disappointing. A clear focus on the BFSI, healthcare, and manufacturing sectors implies a balanced product offering for the company.

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After reaching a high of Rs 1,838 in December 2021, the stock began to decline, falling to a low of Rs 943.70 in June 2022. This drop represents a correction of approximately 49% in the share price.

The stock found support at the level of Rs 975 and remained consolidated for about a year before resuming its gradual upward journey.

Since May 2023, the stock has been on an upward trajectory, making higher highs and higher lows.

In the last year, the stock has increased by 33%, while in the last six months, shares of Tech Mahindra have gained 31%. On a year-to-date basis, the stock has risen by 25.5%.

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