Global IT giant Tech Mahindra has seen its stock price surge in the past few weeks, giving investors a much-needed morale boost. In a market where volatility has been the norm, Tech Mahindra stands as an exception – a company that has defied market expectations and charted a steady path of growth. In this article, we’ll take a closer look at Tech Mahindra’s stock performance and what it means for investors.
Unleashing Tech Mahindra’s Stock Profitability
Tech Mahindra’s shares have seen big gains over the last twelve months. After briefly dipping in the wake of the COVID-19 pandemic, the stock has steadily recovered and has now surpassed its pre-pandemic valuations. But what are the factors that are fueling the surge?
First and foremost, Tech Mahindra has seen a massive upturn in demand for their services. Their business model combines traditional tech services with newer innovations, such as cloud computing and AI, making them a leader in the sector. Furthermore, their success in transitioning to a hybrid mode of service delivery has enabled them to keep going despite a changing business environment.
What’s Fueling the Surge in Tech Mahindra Shares?
Analysts point to a range of factors as being behind Tech Mahindra’s stock rise. The company has continued to expand into new markets, broadening its geographic reach and increasing its customer base. This has been complemented by their strong showing in the IT consulting and business process outsourcing (BPO) space, positioning them to capitalize on the growth in demand for these services. Additionally, their increasing focus on digital transformation and sustainability initiatives have also boosted their profile in the market.
The Factors Impacting Tech Mahindra Stock Price
Aside from these fundamentals, external factors have also come into play. The Indian stock market has seen an overall uptick in the last year, and Tech Mahindra has benefitted from the overall swell of investor confidence. And after entering the Nifty50 index, the company has seen its stock price rapidly rise despite volatility.
Navigating the Ups and Downs of the Indian Stock Market
For investors looking to capitalize on Tech Mahindra’s stock rise, a prudent approach is required. There’s no doubt that the company has strong fundamentals to back up its recent surge in profitability, but Indian stock markets are complex, and risk-management is key to success. Many investors favor a buy-and-hold approach, while others prefer a more active approach, attempting to take advantage of short-term fluctuations in the market. Whichever the strategy, the aim should always be to find the right balance between risk and reward. Tech Mahindra has certainly made a name for itself in the stock market, with its stock price soaring drastically in the past few weeks. If these trends keep up, it is likely to be yet another impressive story of success for the conglomerate. It looks like Tech Mahindra is on the up and up, and there is no telling just how far they can go!
The Indian IT giant Tech Mahindra’s stock price has been consistently on the rise. Its share price has increased in the past few quarters and it stands at Rs 725.50 as on 22nd February 2021, yielding a considerable return on investment for its shareholders.
The performance of the software services provider has been impressive with good results in the December 2020 quarter and a healthy order book. Revenue grew 4% sequentially in the December 2020 quarter to Rs. 9,486 crore and in constant currency, the growth stood at 4.9%. Profit after Tax (PAT) increased by 11.7% to Rs 1,082 crore, with the company’s operating margin at a healthy 18.6%.
The company’s banking, financial services, and insurance (BFSI) vertical tops the list of revenue drivers, with a 9% increase over the previous quarter. The telecom segment is second with a 5% increase and the government/defense segment is third with a 4% increase.
Further, its broadening presence across regions and industries is another driver for its stock price appreciation. It has presence in four major geographies, viz. US, Europe, Asia Pacific, and Rest of the World. It also operates in multiple industry verticals such as its core IT services, educational services, engineering solutions, and operations solutions.
Tech Mahindra is also focusing on digital transformation and offering cloud-native services to its large customer base. It is focusing on four areas, namely cloud applications, public cloud, unified communications, and automation services to bolster its digital transformation agenda.
The company’s expansion into higher-value activities such as artificial intelligence and machine learning is also a factor in its stock’s increased popularity. Its other businesses such as fintech, retail, healthcare, and manufacturing have seen increasing traction and growth, which have also propelled the stock’s rise.
Tech Mahindra’s stock has been on a rising trend, backed by strong fundamentals and a robust outlook for the near future. This is also supported by its diversified presence across regions and industry segments. All in all, Tech Mahindra’s stock is likely to continue its upward trajectory in the foreseeable future.