Company Analysis Tech Mahindra Limited
1. Summary
Advantages
- Dividends (4.05%) are higher than the sector average (2.91%).
- Current debt level 3.53% is below 100% and has decreased over 5 years from 4.13%.
Disadvantages
- Price (1705.35 βΉ) is higher than fair price (276.93 βΉ)
- The stock's return over the last year (23.78%) is lower than the sector average (29.78%).
- The company's current efficiency (ROE=8.64%) is lower than the sector average (ROE=15.62%)
2. Share price and performance
2.1. Share price
2.2. News
2.3. Market efficiency
| Tech Mahindra Limited | High Tech | Index | |
|---|---|---|---|
| 7 days | -0.8% | 1.8% | -0.6% |
| 90 days | -1.2% | 4.7% | -4.8% |
| 1 year | 23.8% | 29.8% | 7.2% |
TECHM vs Sector: Tech Mahindra Limited has significantly underperformed the "High Tech" sector by -6.01% over the past year.
TECHM vs Market: Tech Mahindra Limited has outperformed the market by 16.56% over the past year.
Stable price: TECHM is not significantly more volatile than the rest of the market on "Bombay Stock Exchange" over the last 3 months, with typical variations of +/- 5% per week.
Long period: TECHM with weekly volatility of 0.4572% over the past year.
3. Summary of the report
4. Fundamental Analysis
4.1. Stock price and price forecast
Above fair price: The current price (1705.35 βΉ) is higher than the fair price (276.93 βΉ).
Price is higher than fair: The current price (1705.35 βΉ) is 83.8% higher than the fair price.
4.2. P/E
P/E vs Sector: The company's P/E (47.36) is higher than that of the sector as a whole (32.03).
P/E vs Market: The company's P/E (47.36) is higher than that of the market as a whole (43.66).
4.2.1 P/E Similar companies
4.3. P/BV
P/BV vs Sector: The company's P/BV (4.11) is lower than that of the sector as a whole (4.5).
P/BV vs Market: The company's P/BV (4.11) is lower than that of the market as a whole (6.15).
4.3.1 P/BV Similar companies
4.4. P/S
P/S vs Sector: The company's P/S indicator (2.15) is lower than that of the sector as a whole (2.89).
P/S vs Market: The company's P/S indicator (2.15) is lower than that of the market as a whole (8.67).
4.4.1 P/S Similar companies
4.5. EV/Ebitda
EV/Ebitda vs Sector: The company's EV/Ebitda (13.83) is higher than that of the sector as a whole (13.28).
EV/Ebitda vs Market: The company's EV/Ebitda (13.83) is lower than that of the market as a whole (15.13).
5. Profitability
5.1. Profitability and revenue
5.2. Earnings per share - EPS
5.3. Past profitability Net Income
Yield Trend: Negative and has fallen by -8.31% over the last 5 years.
Accelerating profitability: The return for the last year (0%) exceeds the average return for 5 years (-8.31%).
Profitability vs Sector: The return for the last year (0%) is lower than the return for the sector (7.44%).
5.4. ROE
ROE vs Sector: The company's ROE (8.64%) is lower than that of the sector as a whole (15.62%).
ROE vs Market: The company's ROE (8.64%) is higher than that of the market as a whole (-0.3088%).
5.5. ROA
ROA vs Sector: The company's ROA (5.26%) is lower than that of the sector as a whole (10.37%).
ROA vs Market: The company's ROA (5.26%) is lower than that of the market as a whole (7.53%).
5.6. ROIC
ROIC vs Sector: The company's ROIC (28.97%) is lower than that of the sector as a whole (35.86%).
ROIC vs Market: The company's ROIC (28.97%) is higher than that of the market as a whole (16.2%).
7. Dividends
7.1. Dividend yield vs Market
High yield: The dividend yield of the company 4.05% is higher than the average for the sector '2.91%.
7.2. Stability and increase in payments
Dividend stability: The company's dividend yield 4.05% has been steadily paid over the past 7 years, DSI=0.86.
Weak dividend growth: The company's dividend yield 4.05% has been growing weakly or stagnant over the past 5 years. Growth over only 2 years.
7.3. Payout percentage
Dividend Coverage: Current payments from income (166.13%) are at an uncomfortable level.
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