Tech Mahindra (TECHM)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Being a Buffett/Graham investor, I ask whether Tech Mahindra is a wonderful business at a fair price. At ₹1,632.80, market cap ₹1.45 lakh Cr, P/E 28.25, P/B 4.88. The balance sheet is clean: debt/equity 0.07, ROE 16.90%, ROCE 18.56%, Altman Z 4.27, Piotroski F 8/9. Free cash flow ₹5,806 Cr and dividend yield 3.12% show cash generation. Latest quarter sales ₹14,393 Cr and net profit ₹1,119 Cr; promoter holding 34.97%. The stock sits within its 52-week range of ₹1,304.10–₹1,854.00. But growth is the problem: sales growth 9.11%, five-year revenue CAGR 7.52%, yet profit growth -3.44%. Rising sales with falling profits suggests pricing or cost pressure, not a wide moat. IT services can be sticky, but Tech Mahindra looks like a competitive Stalwart, not a Fast Grower. Valuation is the crux. Graham Number is only ₹545.80, so price is 148.77% above it; there is no Graham margin of safety. DCF intrinsic value ₹3,172.21 is above price, which offers hope if cash flows persist. PEG 1.68 and P/E 28.25 are not bargain territory for low-single-digit revenue growth and negative profit growth. The negative EV/EBITDA of -11.67 is an anomaly I would want explained, not ignored. FairStock 61/100 STEADY fits. I would wait for profit growth to recover and for price to offer margin of safety before committing. Until then, the quality balance sheet and dividend are strengths, but the price asks for more than the current earnings trajectory delivers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer