Tech Mahindra stock climbs 4% after second-quarter results

what happened

According to cnbctv18.com, Tech Mahindra shares rose more than 4% in early trading on Friday, October 16, even though investment banks offered mixed views on the stock after its September-quarter results.

HSBC kept a buy rating with a target price of ₹1,800 per share, implying about 9% upside from the previous close. The bank said the results were slightly better than expected and that the company still posts the strongest growth among its top-tier peers. CLSA maintains a hold rating with a target of ₹1,494, which implies a downside of about 9.5%. Nomura rates the stock neutral with a target of ₹1,650.

Of the 44 analysts covering the company, 29 rate it buy, 10 hold and five sell. The shares traded at ₹1,709.8 and were up 7% year to date, while most other large-cap IT peers were down between 20% and 35%. Investors also noted the bonus issue, the first in 11 years, and the board's approval of an interim dividend.

why it matters

The move matters for markets because Tech Mahindra is the only large-cap stock in the Nifty IT index with a positive return this year, while the broader sector remains under pressure. Brokerage views are split, so the stock's next moves will likely depend on whether the company can sustain its revenue growth and its 15% EBIT margin target.

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