Last updated: 28 Jul, 2020 | 08:47 am
The first-quarter results were expected to be affected the most, due to the lockdown imposed on March 24th. Given the circumstances, Tech Mahindra has posted a decent set of numbers. The pandemic has had a lesser impact on the IT sector, and most of the company have reported better-than-anticipated results in Q1FY21.
The Covid-19 pandemic has forced a tectonic shift in businesses processes to move towards greater digitization. In fact, Tech Mahindra has said that many of its customers are adopting new age technologies as businesses across the globe are actively pursuing digital transformation. The company believes that it is well-positioned to capture such spends and endeavours to be back on the growth path, amid increased signs of demand normalization.
The stock has gained about 45% from its 52-week low on March 23th. The shares are trading at a PE of 14.06 as compared to the sector PE of about 23.40 times.
Our VGQM model has a BUY rating on the stock.