TECHMAH-TF by icestar


									                                                                                      Techno Funda
                                                            Horizon -1-60 Days                 28 October 2011

               Tech Mahindra                          CMP 586                     SL 560                 TGT 640
                                                      Company Description
 A.K. Prabhakar                                Tech Mahindra Limited provides information technology (IT)
                                                      services to the telecommunications industry worldwide. Its IT
 Shweta Prabhu                               solutions comprise consulting services, such as strategy
                                                      planning, assessment, procurement, and re-engineering
 C.A. Vivek Gujrati                                   solutions, as well as planning, audits, and practices; system
                                                      integration and transformation services; managed services,
Key matrix
                                                      including application management, infrastructure management,
Price (Rs.)                                     586
                                                      revenue management, and mobile virtual network enabler
Market Cap (Rs.Crs.)
                                                      services; application development, maintenance, and support
52 High / Low (Rs.)
                                                      services; B/OSS solutions; and business intelligence and data
                                                      management solutions. The company also offers network
PE (x)
                                                      solutions and services, including network lifecycle, network
                                                      integration and testing, data quality management, managed
Book Value (Rs.)
                                                      network, and network solutions; and infrastructure management
                                                      services comprising data centre, managed network, application
                                                      support, and end user services. The company was founded in
NSE                                       TECHM
                                                      1986 and is based in Pune, India.
Financials Consolidated
(Rs Crores)             FY1003     FY1103 % chg
                                                      ~ Satyam's acquisition will help Tech Mahindra to diversify its
Gross Sales              4625.4    5140.23 11.13
                                                      client base and industry focus.
PBIDT                   1199.52     715.44 -40.36
Interest                  218.4     111.36 -49.01
                                                      ~ Large deals like those of Bharti and a gradual revival in the
Depreciation             133.66      143.5   7.36
                                                      Telecom vertical will help volume growth.
Net Profit               703.28        329 -53.22
EPS (Rs)                  57.50      26.12   -        ~ Emerging market telco rollouts and domestic BPO deals are
CEPS (Rs.)                68.42      37.51   -        expected to be key growth contributors.
F.V. (Rs)                    10         10   -
Equity Capital           122.32     125.96   -        ~ The company’s five-year multi-million dollar deals bagged in
PE (x)                    10.19      22.44   -        4QFY2011 from Vodafone are expected to ramp up in from
Latest Quarterly results                              2QFY2012.
(Rs Crores)              Q1FY10    Q1FY11 % chg
Gross Sales              1133.68   1292.48   14.01    ~ Though volatile global events have been impacting the growth
PBIDT                     253.49    287.77   13.52    of the sector overall but the rupee depreciation has been
Net Profit                144.87    181.26   25.12    helping the IT companies which is compensating the toplie
Equity                    124.07    126.99    -       growth.
EPS                        11.68     14.27    -
Shareholding Pattern                                  ~ Tech Mahindra has bagged a managed services deal from
(% )                      Jun-11   Sep-11      chg    Bahrain-based Internet service provider Menatelecom for an
Foreign                     4.32     4.77      0.45   undisclosed amount. As part of the contract, Tech Mahindra will
Institutions               15.03    15.34      0.31   partner with telecom gear maker Huwaei Technologies in
Corp. Holding                0.9     0.73     -0.17   managing the business support systems and operations of
Promoters                   71.1    70.98     -0.12   Menatelecom's WIMAX network. The agreement will enable the
Public&Others               8.67     8.18     -0.49   Internet service provider to enhance and expand its billing and
                                                      customer relation management system in the region.

For Private Circulation Only                                                               Anand Rathi Retail Research
                                                                                                                                    Techno Funda
                                                                                          Horizon -1-60 Days                                        28 October 2011

Technical Outlook

Technical Comments

Stock has Gapped-up(570-571) after making higher low and higher high should target Rs.640 on higher
side 100DMA -673 & 200DMA Rs.678 can possibly be target for the stock in short term, while strong
support comes around Rs.560. Traders can hold the stock with Rs.560 as strong stop loss.

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For Private Circulation Only                                                                                                                 Anand Rathi Retail Research

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