it · TECHM
Tech Mahindra
Tech Mahindra: PE above historical average. NARROW LEADERSHIP regime. sector leading.
Price
₹1,669
Price 2026-07-30
5 day
+7.02%
Short-term move
1 month
+21.90%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹128.2k Cr
inflow sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Tech Mahindra (TECHM) in the it sector?”
Price chart
₹1,635
-0.27% over period
About Tech Mahindra
Tech Mahindra Limited provides information technology services and solutions in India, the Americas, Europe, and internationally. The company offers TechM AppGinieZ, a software development lifecycle acceleration platform; Swifter.io, a software engineering platform; ADMSNXT Reforge, an application modernization platform; Autonomous Operations Center, an AI-powered operations platform; and New Age Delivery Platform for DevSecOps and engineering. It also provides LitmusT, a quality engineering and intelligent testing platform; TechM Orion, an agentic AI platform; Ops amplifAler 4.0 for IT operations; Email amplifAler for visualization and automation; SDLC amplifAler solutions; Zone insights solutions for monitoring of object movement; synthetic data generation, freightwatch solutions, cognitive process monitoring, and guardrails framework for AI; VerifAI for scaling AI; and MobiLytix for marketers. In addition, the company offers netOps.ai, an automated cloud platform; AftEAZE solution for warranty and aftermarket problems; AI maturity assessment, generative AI studio, and generative AI performance monitoring; Vision amplifAler, a vision-based solution; Document amplifAler, a digi...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -9.2% over 14 days) — not a reliable pattern.
52-week position
Trading at 90% of 52-week high
Technicals
RSI 14
86.2
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
26.7
43th pct · 7 quarterly points (limited history)
P/B
4.3
ROE
16.6%
Moderate profitability — 16.6% ROE
Market cap
₹128.2k Cr
Revenue growth
1260.0% YoY
Promoter
37.0%
52-week range
₹1,304.1 – ₹1,854
90% of high
RSI (14)
86.2
uptrend
vs 50 DMA
Above
DMA ₹1,476.62
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Tech Mahindra scores 95/100 on fundamentals (strong). Tech Mahindra: PE above historical average. NARROW LEADERSHIP regime. sector leading.
Fundamental Score: 95/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 17.2% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 17.16% is moderate efficiency-driven and stable. Net margin 8.7%, asset turnover 1.19x, leverage 1.7x.
What This Means
Net margin of 8.7% means the company keeps ₹8.7 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 1.19x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
36.5%
Operating
12.5%
Net
8.7%
Gross margin 36.5% → operating margin 12.5% → net margin 8.7%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 19.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 9.4% — moderate. Generating cash after investments.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| INFY Infosys | ₹1,155.1 | +10.3% | 14.2 | 31.4% | 660% | ₹4.3L Cr |
| HCLTECH HCL Technologies | ₹1,352.7 | +8.7% | 19 | 23.4% | 530% | ₹3.2L Cr |
| COFORGE Coforge | ₹1,742.9 | +21.3% | 34.6 | 18.6% | 3050% | ₹67.1k Cr |
| IKS Inventurus Knowledge | ₹1,782.3 | -0.9% | 44.8 | 31.4% | 1850% | ₹31.7k Cr |
| KAYNES Kaynes Technology | ₹3,621.5 | +11.8% | 60.9 | 9.6% | 2620% | ₹22.2k Cr |
| AFFLE Affle India | ₹1,622.7 | +11.1% | 45.6 | 13.8% | 2030% | ₹20.7k Cr |
| FSL Firstsource Solutions | ₹299.62 | +17.1% | 25.5 | 15.9% | 1950% | ₹16.8k Cr |
| CYIENT Cyient | ₹847.7 | +2.0% | 22 | 7.8% | 90% | ₹9.4k Cr |
| TECHM Tech Mahindra | ₹1,669 | +7.3% | 26.7 | 16.6% | 1260% | ₹1.3L Cr |
Tensions to watch
Promoter holding at 37.0% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹1752 (+5%)
Trend reversal confirmation
Breaks below ₹1586 (-5%)
Further downside risk
PE reverts to median of 26.7 (7 quarterly points (limited history))
Valuation normalization
It sector holding leadership position
Sector momentum continuing
Risk Flags
Tight liquidity. Monitor cash position and access to credit lines.
➡️ 1 flags — 0 positive, 1 warning. Mixed profile.
Data Quality
News Correlation
50 articles scanned for fundamental themes
