Tech Mahindra Ltd.
NSE: TECHMTech Mahindra Ltd.: A 30-second snapshot
Tech Mahindra (TECHM) trades at ₹1,483.5, roughly flat over 12 months (-1.1%) and 20% below its 52-week high. The stock sits just below its 200-DMA at ₹1,490, while posting an 11.3% gain over three months. Among six large-cap IT peers, TECHM ranks fifth on ROE (16.61%) and carries a D/E of 7.27 — the highest in the group — alongside a trailing PE of 27.4 that is above every comparable peer.
P/E
27.4
Forward P/E
17.4
ROE
+16.6%
Debt / Equity
7.27
Profit Margin
+8.5%
Div. Yield
+3.4%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
50/100
News
8 headlines · 5 positive · 1 negative
IT stocks slip: TCS, Infosys, Coforge, LTIMindtree, Persistent, TechM, HCLTech tank up to 7%; what's ahead? - Business Today
Business Today
TCS, Infosys, HCL Tech, Wipro, Coforge, Mphasis, TechM: IT stocks to buy— Fresh targets - Business Today
Business Today
CG Power, TMPV, TechM among top stocks to buy: Check price targets, potential rise & more - Business Today
Business Today
Infosys, TCS, Wipro, HCLTech, TechM shares gain as Nifty IT climbs 2%; What's fuelling the upmove? - Business Today
Business Today
TCS, Infosys, Coforge, TechM, LTM, KPIT shares: Opportunity or value trap? Target prices - MSN
MSN
Recent context
- ·Nifty IT declined broadly on June 3, 2026, with TECHM among the stocks recording a fall of up to 7% in a sector-wide move linked to macro and global IT-spend concerns per Business Today reporting.
- ·Analyst coverage across multiple outlets has included TECHM in IT sector reviews with fresh third-party price targets cited in the week of June 1–5, 2026; the stock was also named in a neutral framing as a potential 'value trap or opportunity' question in MSN coverage dated June 5.
- ·The 40 analysts tracked in the data set have not yet reported a consensus rating numerically — the rating field is null — meaning the quantitative analyst-consensus signal is unavailable for this run date.
Strengths
- +Revenue has grown at a 5-year CAGR of 12.6% and earnings at 15.9%, suggesting the core business has expanded meaningfully over the medium term.
- +Debt trend is classified as falling, and FCF was positive in 4 of the available years, indicating some capacity to generate cash even during a period of elevated balance-sheet leverage.
- +Dividend yield of 3.44% is among the higher yields in the large-cap IT space, providing a return component independent of price appreciation.
- +Forward PE of 17.4 represents a 36% discount to the trailing PE of 27.4, indicating the analyst community embeds material earnings growth in near-term estimates for the stock.
Weaknesses
- −D/E of 7.27 is the highest in the peer group by a wide margin; for an IT-services business where peers carry D/E well below 1.0, this level of leverage is a structural outlier and warrants scrutiny of the underlying debt composition.
- −ROE of 16.61% is fifth among six peers; TCS (48.4%), INFY (31.44%), and HCLTECH (23.36%) all generate substantially higher returns on equity, indicating a meaningful gap in capital efficiency.
- −Trailing PE of 27.4 is above all six peers despite the below-median ROE and quality score of 46 (fourth of six), creating a premium-valuation / below-median-quality combination.
- −The stock has spent extended time below its 200-DMA; the 52-week drawdown is -20.0% and the 12-month price return is -1.1%, underperforming several peers in absolute terms.
Open questions
- ?What is the source and composition of the D/E ratio of 7.27 — does it reflect operating leases, acquisition financing, or working-capital facilities, and how does the debt maturity profile compare to FCF generation capacity?
- ?Does the gap between the trailing PE of 27.4 and forward PE of 17.4 reflect analyst expectations of a step-change in earnings, or does it incorporate one-off items that may not recur?
- ?Given that ROE has exceeded 15% in only 3 of the available years, is the current return-on-equity trajectory consistent with the earnings growth implied by the forward multiple?
- ?How has TECHM's revenue mix shifted across verticals (telecom, manufacturing, BFSI) relative to peers, and does any concentration in slower-growth verticals explain its below-peer quality and ROE ranking?
Peer comparison: IT
Ranks 4 of 6 on qualityTechnical state
Current price
₹1,483.50
SMA 50
₹1,447.71
SMA 200
₹1,490.05
RSI (14)
53.3 (neutral)
From 52w high
-20.0%
1Y return
-1.1%
3M return
+11.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 7.27 is substantially elevated for an IT-services company; large-cap IT peers such as TCS and HCLTECH typically carry D/E well below 1.0. With a net profit margin of 8.47%, the capacity to service leverage-related obligations is limited relative to peers.
- mediumTECHM ranks 5th of 6 IT peers on ROE (16.61% vs TCS 48.4%, INFY 31.44%, HCLTECH 23.36%) and 4th of 6 on quality score (46 vs peer range 40–65). Its trailing PE of 27.4 sits above TCS (16.2), INFY (15.6), HCLTECH (18.8), and WIPRO (15.8) — a valuation premium despite below-median return metrics.
- mediumPrice of ₹1,483.5 sits 0.4% below the 200-DMA (₹1,490.1) while down 2.0% over 12 months; the 52-week drawdown stands at -20.0%. Nearest resistance cluster is at ₹1,492–₹1,531. RSI is neutral at 53.3.
- lowROE exceeded 15% in only 3 of available years and the persistence consistency score is 41, second-lowest among the 6 IT peers. FCF was positive in 4 of available years — adequate but not exceptional for the sector.
Cross-section contradictions
- Forward PE of 17.4 represents a sharp compression from trailing PE of 27.4, implying substantial earnings expansion is priced in; yet ROE of 16.61% is the second-lowest among 6 IT peers and the quality score of 46 is the fourth-lowest in the group, making the embedded growth expectation difficult to reconcile with the current return profile.
- The 3-month price change is +11.3% and RSI is neutral at 53.3 (not overbought), yet the stock remains 0.4% below its 200-DMA and is down 1.1% over 12 months — short-term momentum has not yet translated into recovery on a 12-month basis.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days