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Tech Mahindra
TECHM · Nifty 50
₹1,462.4
Price 2026-06-17
At a Glance
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Tech Mahindra scores 95/100 on fundamentals (strong). Tech Mahindra: PE below historical average. BROAD EXPANSION regime.
Fundamental Score: 95/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 16.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 16.15% is moderate efficiency-driven and stable. Net margin of 8.5% × asset turnover of 1.14x × leverage of 1.7x.
What This Means
Net margin of 8.5% means the company keeps ₹8.5 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 1.14x 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
35.5%
Operating
12.0%
Net
8.5%
Gross margin 35.5% → operating margin 12.0% → net margin 8.5%. 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 1.3x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 19.5x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.3x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 9.7% — moderate. Generating cash after investments.
Peer Comparison
Key Watchpoints
Breaks above ₹1536 (+5%)
Trend reversal confirmation
Breaks below ₹1389 (-5%)
Further downside risk
PE reverts to 5Y median of 26.9
Valuation normalization
It sector entering leadership
Sector rotation signal
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