2025-06-16-花旗集团-马恒达科技（TEML）_Tech_Mahindra（TEML.BO）_模型更新_12页_652kb

Citigroup Research: Tech Mahindra (TEML.BO) - Sell Recommendation

• Date: June 16, 2025
• Analyst: Surendra Goyal
• Current Price: Rs1,673.45
• Revised Target Price: Rs1,430 (from Rs1,265)

Key Findings:

• Recommendation: Sell (unchanged).
• Expected Performance: Stock return of -14.5%, dividend yield of 3.3%, total expected return of -11.3%.
• Valuation: Based on a P/E multiple of 21x for FY27, reflecting Tech Mahindra's outperformance compared to peers, though this is slightly above the historical 5-year average of 19x.
• Financial Projections: Projected EPS growth from 51.8% in 2025A to 17.1% in 2027E; net profit is expected to grow from Rs31.77 in 2024A to Rs68.01 in 2027E, with a P/E ratio declining from 52.7x in 2024A to 24.6x in 2027E.
• Risks: Upside potential relies on consistent quarterly performance, higher billing rates, and potential benefits from INR depreciation.

Summary Notes:

• CITI slightly revised FY26E-27E estimates due to exchange rate and operational changes, maintaining a sell stance.
• Risk factors include dependence on peer performance and currency impacts.