Tech Mahindra: Weak near term largely priced in Retain faith on medium-term revenue/EPS growth and reasonable valuations: Nomura Research

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra: A solid quarter :: Kotak Securities

Please Share:: 

A solid quarter. Tech Mahindra reported constant-currency organic revenue growth of 3.8% in 3QFY15, following an outstanding 6.1% growth in 2QFY15. We expect strong growth to continue. TM’s breadth of capabilities in the telecom vertical, strategic initiatives to leverage its vertical expertise to expand into adjacent areas and sharp market segmentation in the enterprise segment will drive strong deal wins and aboveindustry growth on a consistent basis. We incorporate LCC and SOFGEN acquisitions in our estimates and raise FY2015-17E revenue estimates but retain EPS estimates. We maintain our ADD rating with an unchanged target price of `3,000.

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra Ltd. | Q3FY15 Result Update | In-line performance: Maintain HOLD with upward revision in TP to Rs.2,996 from Rs.2,629 ::IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Excellent print despite seasonal weakness… • Tech Mahindra :: ICICI Securities, report

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra - Delivering Beyond Expectations; Upbeat on Demand ::Edelweiss

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Steady perfomance continues Tech Mahindra: HDFC Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra: SOFGEN acquisition - attractive valuation but not the best strategic fit :: Kotak Securities

Please Share:: 

SOFGEN acquisition—attractive valuation but not the best strategic fit. Tech
Mahindra (TM) announced the acquisition of SOFGEN, a Switzerland-based
implementation provider of core banking and wealth-management solutions. TM’s
rationale for the acquisition is to gain access to wealth management and banking
clients. Adoption of core banking by large clients, especially in the US is poor, resulting
in a weak strategic fit. Acquisition consideration at 0.65X EV/revenues and ~8X
EV/EBITDA is attractive. We maintain an ADD rating; target price unchanged at `3,000.

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra - Acquires Core Banking Software Company :: Edelweiss

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Buy Tech Mahindra between Rs 2680 and Rs 2700.:: HDFC Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Technology: 3QFY15E preview: currency to sway results ::Kotak Securities

Please Share::

3QFY15E preview: currency to sway results. 3QFY15 will have cross-currency
headwinds of 160-220 bps besides the usual seasonal weakness, resulting in muted
0-1.2% US dollar revenue growth. Commentary on the magnitude of increase and
timely closure of IT budgets and deal pipelines will be important—we expect 2015 to be
similar to 2014, if not better, in terms of growth. Stock prices corrected 5-10% over the
past month and offer reasonable upsides of 12-20% from current levels. Infosys and
Tech Mahindra are our top picks in the sector.

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra - Lightbridge Acquisition: Enhances Network Skill-Set:: Edelweiss

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra (Update) : Scaling new heights. Maintain BUY :: HDFC Sec, link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra, Taking advantage of connected world :: ICICI Securities, PDF link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra - Charting The Growth Path; Company Update :: Edelweiss, PDF link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra Ltd. (TechM)|Q2FY15 Result Update | Solid revenue Performance: Maintain HOLD with upward revision in TP to Rs.2,531 from Rs.2151 :: IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Solid beat… • Tech Mahindra :: ICICI Securities,

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

Tech Mahindra- Initiating Coverage - Synergy from recent acquisitions to power near-term:: Centrum

Rating: Buy; Target Price: Rs2,090; CMP: Rs1,670; Upside: 25.1%



Synergy from recent acquisitions to power near-term



TechM is a Tier-1 equivalent in Telecom and Enterprise Svcs and has
strengthened its position with strategic acquisitions over FY13
(vCustomer, Hutch Global Services, Comviva and Complex IT). In
verticals where it lags Tier-1 providers, TechM can target
IT-Outsourcing contracts with mid-market clients while maintaining
relationships with top-tier clients through niche services. We expect
price realization to decline slightly over 2HFY13 as BT restructuring
fees run out but bounce back as deals in transition currently move to
billing. We initiate TechM with a Buy Rating and a price target of Rs
2,090 (13x 1-year Fwd EPS in Sep’14).

$   Tier-1 level capabilities in Telecom and Enterprise Services,
niche in others: We think TechM’s management has a pragmatic approach
- focusing on areas of strength such as Telecom and Enterprise Svcs
where their capabilities match that of bigger Tier-1 peers. It has
supported this strategy with carefully chosen acquisitions (which we
expect to see results of over FY15). For other verticals such as BFSI,
the strategy is to use chosen niches such as enterprise mobility to
maintain relevance to Tier-1 clients while exploring larger deals for
IT outsourcing with mid-sized firms that will want to be given high
mindshare by their vendor.

$   Strategy to support increasing wallet-share with Telecom
customers: The six pillar strategy in Telecom (IT, Networks,
Infrastructure, BSG - Business Svcs Group, VAS and Security) will
yield results as Telecom Service Providers are under increasing
pressure to lower cost of operations as they invest in network
upgrades. Acquisitions of Comviva and Hutch Global Services have also
been towards supporting this strategy. The managed services deal with
BASE in Belgium is an example of this strategy at work and we expect
to see deal traction pick up over FY15 for Managed N/w Svcs and BSG
both - with Customer Support in particular seeing very good growth.

$   Deftly positioning itself differently even for mainstream
services: TechM’s focus strategy enables it to match Tier-1
investments thereby avoiding the disadvantages of lower scale –
especially in Europe where its scale comes closer to Tier-1 peers. Its
strength in Enterprise Svcs is maintained with investments in internal
IP even as acquisitions such as Complex IT (in Brazil) increase its
addressable market. In commoditized services such as Testing, TechM
has chosen to differentiate with a focus on niche services,
open-source tools and outcome-linked pricing.

$   Valuation and key risks: TechM’s EPS is understated as 24Mn of its
shares (~10.4% of shareholding) are under the TML Benefit Trust. Even
without adjusting for this, TechM is trading at an attractive
valuation of 12.3x 1-year forward EPS. While there are near-term
margin headwinds as BT’s contract restructuring fee for Barcelona and
Andes contracts run out in 4QFY14, we expect this to be not as
dilutive as many others view it. We assign a Buy rating, with a TP of
Rs 2,090 based on 13x 1-year Fwd EPS at Sep’14.  A key risk is the
potential loss of some contracts from BT as these are up for renewal.
Other major risks come from the exposure to the global economy and the
concentration of revenue in Telecom (47%) and Manufacturing (19%)
verticals.

Tech Mahindra: Buy :: Business Line

Tech Mahindra :Now “Comviva” in the bag! : ICICI Securities

Now “Comviva” in the bag!
Yesterday, Tech Mahindra acquired a 51% stake on a fully diluted basis in
Comviva Technologies Ltd, a Bharti group company, and a global leader
in providing mobile valued added  services (VAS), mobile money and
mobile payment solutions. The deal consideration is | 260 crore (i.e.
EV/rev of 1.53x), in cash, with | 125 crore made upfront and the
remaining | 135 crore to be paid over five years, on Comviva achieving
mutually agreed performance targets. Other key highlights of the deal are:
Comviva had revenues of $70 million in FY12 (~| 334 crore at average |/$
47.8) while revenues grew at 15-18% CAGR during FY10-12. FY12
margins were mid teens with top 10 clients contributing 85% of revenues
and Airtel being the top client. As  of July 2012, the company has | 32
crore of cash and 1500 employees

TECH MAHINDRA The big league beckons ::Edelweiss

The combined entity of Tech Mahindra (TECHM) and Mahindra Satyam
(MSAT) will be the fifth largest IT service provider based out of India with
revenues in excess of USD2.5bn and margins in high teens. We believe that
this entity will emerge as a strong contender in the current vendor
consolidation environment with a diversified practice across service lines, a
huge talent base and significant client relationships. The above merger will
also open up newer opportunities for the company in bids where minimum
past execution records are a must. We initiate coverage on TECHM with a
post merger revenue growth of 7%/9% for FY13/FY14 respectively and with
a target price of INR1,005, implying 12x our FY14E EPS estimate of INR83.7.