Should I buy Tech Mahindra stock in 2025?
Is Tech Mahindra stock a buy right now?
Tech Mahindra Limited (NSE: TECHM), one of India’s leading IT services providers, is currently trading at around ₹1,495, with an average daily trading volume of approximately 2.27 million shares (as of early May 2025). The stock’s recent momentum is underpinned by a robust Q4 FY25 financial performance—net profit surged by over 75% year-on-year, and EBIT margins improved significantly to 10.5%. Notably, Tech Mahindra secured new deals worth $2.7 billion in FY25, representing a notable 42.5% increase from the prior year, demonstrating growing client confidence and diversified demand across sectors. While there has been some moderation in overall revenue growth (+1.9% YoY), the market’s interpretation remains constructive, recognizing the company’s focused margin improvement initiatives and ongoing investments in next-generation AI and consulting services. Sector-wide, Indian IT remains a preferred play for both institutional and retail investors, given global digital transformation and AI adoption trends. At its current price point, and in view of continued business transformation, the consensus target price stands at ₹1,944—a level identified by more than 27 national and international banks. With ambitious three-year growth plans and a solid dividend profile, Tech Mahindra stands out among its peers for both its resilience and forward-looking strategy, offering investors a potentially timely consideration within India’s dynamic technology sector.
- ✅Strong net profit growth of 80.3% YoY in FY25 indicates effective cost and margin improvement.
- ✅Significant deal momentum with $2.7 billion TCV in FY25, showcasing client trust and pipeline strength.
- ✅Attractive 2.68% dividend yield, underpinned by healthy cash flows and disciplined capital allocation.
- ✅Strategic investments in AI and consulting strengthen competitive positioning across key verticals.
- ✅Well-diversified across geographies and industries, reducing risk from sector-specific headwinds.
- ❌Premium valuation (P/E 34.43) versus peers may limit near-term upside for value-focused investors.
- ❌Recent revenue growth remains modest, and sectoral headwinds in manufacturing could affect momentum.
- ✅Strong net profit growth of 80.3% YoY in FY25 indicates effective cost and margin improvement.
- ✅Significant deal momentum with $2.7 billion TCV in FY25, showcasing client trust and pipeline strength.
- ✅Attractive 2.68% dividend yield, underpinned by healthy cash flows and disciplined capital allocation.
- ✅Strategic investments in AI and consulting strengthen competitive positioning across key verticals.
- ✅Well-diversified across geographies and industries, reducing risk from sector-specific headwinds.
Is Tech Mahindra stock a buy right now?
- ✅Strong net profit growth of 80.3% YoY in FY25 indicates effective cost and margin improvement.
- ✅Significant deal momentum with $2.7 billion TCV in FY25, showcasing client trust and pipeline strength.
- ✅Attractive 2.68% dividend yield, underpinned by healthy cash flows and disciplined capital allocation.
- ✅Strategic investments in AI and consulting strengthen competitive positioning across key verticals.
- ✅Well-diversified across geographies and industries, reducing risk from sector-specific headwinds.
- ❌Premium valuation (P/E 34.43) versus peers may limit near-term upside for value-focused investors.
- ❌Recent revenue growth remains modest, and sectoral headwinds in manufacturing could affect momentum.
- ✅Strong net profit growth of 80.3% YoY in FY25 indicates effective cost and margin improvement.
- ✅Significant deal momentum with $2.7 billion TCV in FY25, showcasing client trust and pipeline strength.
- ✅Attractive 2.68% dividend yield, underpinned by healthy cash flows and disciplined capital allocation.
- ✅Strategic investments in AI and consulting strengthen competitive positioning across key verticals.
- ✅Well-diversified across geographies and industries, reducing risk from sector-specific headwinds.
- What is Tech Mahindra?
- How much is Tech Mahindra stock?
- Our full analysis on Tech Mahindra </b>stock
- How to buy Tech Mahindra stock in India?
- Our 7 tips for buying Tech Mahindra stock
- The latest news about Tech Mahindra
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Tech Mahindra's performance for more than three years. Every month, lakhs of users across India rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Tech Mahindra.
What is Tech Mahindra?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | India | Headquartered in India, a major IT services exporter with global operations. |
💼 Market | NSE (National Stock Exchange of India) | Listed on one of India's largest and most liquid stock exchanges. |
🏛️ ISIN code | INE669C01036 | Unique code used globally to identify Tech Mahindra securities for trading. |
👤 CEO | Mohit Joshi | Appointed leader with a focus on AI and operational excellence for future growth. |
🏢 Market cap | ₹146,486 crores (approx. $17.5 billion) | Large-cap company with strong sector position, indicating market confidence. |
📈 Revenue | ₹52,988 crores (FY25) | Revenue grew 1.9% YoY, showing modest expansion amid sectoral headwinds. |
💹 EBITDA | ₹5,138 crores (FY25, EBIT as proxy) | Strong 63.3% YoY EBITDA growth, reflecting successful margin improvement initiatives. |
📊 P/E Ratio (Price/Earnings) | 34.43 | Trading at a premium versus peers; signals high growth expectations but limits upside. |
How much is Tech Mahindra stock?
The price of Tech Mahindra stock is rising this week. As of now, TECHM is trading at ₹1,494.60 per share, reflecting a slight drop of 0.11% in the past 24 hours but a gain of 2.23% over the last week. The company’s market capitalization stands at ₹146,486 crores, with an average 3-month trading volume of 2.27 million shares.
Metric | Value |
---|---|
Price per share | ₹1,494.60 |
24h change | -0.11% |
1 week change | +2.23% |
Market capitalization | ₹146,486 crores |
Average 3-month volume | 2.27 million shares |
P/E ratio | 34.43 |
Dividend yield | 2.68% |
Beta | 0.89 |
Tech Mahindra currently holds a price-to-earnings (P/E) ratio of 34.43 and offers a dividend yield of 2.68%, while its stock beta is at 0.89, suggesting lower volatility than the broader market. With its stable dividend and active deal pipeline, TECHM provides a balanced opportunity for investors seeking both growth and income in India's IT sector.
Check out the best brokers in India!Compare brokersOur full analysis on Tech Mahindra stock
After a rigorous evaluation of Tech Mahindra's latest quarterly results, an in-depth review of its stock’s three-year trajectory, and the application of our proprietary multifactor analysis—leveraging financial metrics, technical signals, liquidity data, and sectoral benchmarking—we arrive at a nuanced perspective on this significant Indian technology services leader. By synthesizing cross-disciplinary market signals and competitor landscapes, one question emerges that is increasingly impossible to ignore: Why might Tech Mahindra stock once again become a strategic entry point into the Indian IT services sector in 2025?
Recent Performance and Market Context
Tech Mahindra has demonstrated notable resilience and adaptability in a dynamic macroeconomic backdrop. Over the past twelve months, the stock has advanced by +19.5%, outpacing key indices and reinforcing its status as a stalwart in the Indian IT sector. Despite experiencing a modest pullback of -8.8% over the last six months—an industry-wide correction aligned with cyclical sector rotations—recent momentum has turned favorable, as evidenced by a 2.23% gain over the past week.
Positive developments abound in both financial and operational spheres:
- Q4 FY25 marked a robust quarterly net profit of ₹1,167 crores, an 18.7% QoQ and 76.5% YoY surge, underpinned by optimized cost structures and improved business mix.
- EBIT margins expanded by 320 basis points YoY, pointing to successful execution of efficiency initiatives.
- Tech Mahindra secured deal wins with a TCV of $2.7 billion in FY25—a record achievement and a clear indicator of growing client demand.
- The company’s final dividend of ₹45 per share (104% payout ratio) positions it amongst the more appealing dividend stories in the sector.
- Notably, macroeconomic signals indicate an uptick in IT spending by global clients, aligning with trends in digital transformation, AI deployment, and cloud migration—a supportive backdrop for Tech Mahindra.
Technical Analysis
Current technicals are increasingly constructive for investors seeking favorable entry points:
- Price Dynamics: At ₹1,494.60, the stock stands above its 20-day (₹1,386.8) and 50-day (₹1,461.1) moving averages, reflecting medium-term accumulation and a resurgent bullish phase.
- Momentum Indicators:
- RSI (14 days) at 62.4 presents a mildly bullish reading with room for further upside before overbought territory.
- MACD at 15.8 (above signal and center lines) underscores persistent upward momentum.
- Support and Resistance: Immediate supports are observed at ₹1,487.9 and ₹1,481.2, with resistance at ₹1,503.9 and ₹1,513.2—a tight range that, if breached, could lead to a sustained breakout.
- Oscillator Readings: With 6 out of 9 oscillators in the bullish zone and a Stochastic RSI at 97.0, some short-term consolidation is plausible, yet the medium-term structure points to continued accumulation by institutional buyers.
- SMA Alignment: Trading above 5 out of 8 simple moving averages signals healthy participation and growing conviction.
Takeaway: The technical landscape is one of emerging strength, positioning Tech Mahindra as an attractive candidate for investors favoring momentum-supported fundamentals.
Fundamental Analysis
Examining core fundamentals, Tech Mahindra’s performance stands out through several value-creating levers:
- Revenue and Profits: FY25 delivered top-line growth of 1.9% (₹52,988 crores), but the real highlight is in EBIT, which surged 63.3% YoY to ₹5,138 crores. Net profit expanded a remarkable 80.3% YoY, evidencing operational leverage and prudent cost management.
- Margin Trajectory: EBIT margins reached 9.7% (up 360 bps YoY), a testament to Project Fortius and tight fiscal discipline.
- Valuation: While the P/E ratio stands at 34.43, indicating a premium to larger domestic peers (TCS, Infosys, HCL), this valuation may increasingly be warranted given Tech Mahindra’s aggressive margin expansion, robust deal pipeline, rising dividend yields, and transformation initiatives. The PEG ratio normalizes growth expectations, reinforcing long-term attractiveness.
- Structural Strengths:
- Broad Service Portfolio: From AI and analytics to network and cyber security, Tech Mahindra is architected for digital-first client needs.
- Strategic Expansion: With vertical diversification—BFSI and Healthcare growing faster than the legacy telecom segment—and international market penetration, portfolio risk is being actively managed.
- Brand and Client Roster: Serving 162 Fortune 500 clients, and leveraging Mahindra Group synergies, the brand commands trust and relevance at scale.
These fundamentals, combined with an attractive 2.68% dividend yield and a healthy cash position (₹7,656 crores), justify renewed institutional and retail interest at current levels.
Volume and Liquidity
Consistent and vigorous trading activity highlights Tech Mahindra’s robust liquidity profile:
- Average daily volume of 2.27 million shares underscores investor confidence and ensures tight bid-ask spreads, vital for both short-term traders and long-term holders.
- Dynamic float: The combination of high free float and periodic absorption at technical supports suggests sustained price discovery and resilience against market shocks.
- Market Cap: At ₹146,486 crores, its stature ensures inclusion in key indices, supporting passive fund flows and elevated liquidity.
Such volumes and float dynamics foster stable valuation and ready market access, lowering execution risk for investors.
Catalysts and Positive Outlook
Looking forward, several bullish catalysts are poised to underpin future outperformance:
- AI and Consulting Initiatives: The launch of the ‘AI Delivered Right’ framework and scaling of the TechM Consulting practice enhance the company’s value proposition amid rising global demand for AI-led transformation.
- Manufacturing Xperience Centre: The establishment in Chennai sharpens Tech Mahindra’s edge in industrial IoT and AI-driven manufacturing—a high-potential vertical.
- Deal Momentum: Record TCV and a growing order pipeline point to strong revenue visibility into FY26 and beyond.
- Geographical and Vertical Diversification: Strengthening presence in the Americas, Europe, and expanding verticals like BFSI and Healthcare insulate the topline from cyclical sector weakness.
- Strategic Partnerships: Alliances with tech leaders (Google Cloud, Qualcomm, Rakuten Symphony) provide early access to advanced solutions and reinforce innovation credentials.
- ESG Commitment: Ongoing sustainability initiatives, lower attrition (11.8%), and solid employee engagement serve to future-proof both growth and reputation.
- Margin Expansion Target: Management’s strategic roadmap targeting 15% EBIT margin by FY27—well above current levels—could drive a rerating as execution progresses.
Taken together, these catalysts create a multi-year runway for earnings and valuation growth, setting the stage for a renewed bullish cycle.
Investment Strategies
Whether investors are considering short-, medium-, or long-term positions, Tech Mahindra’s profile suits a range of strategies:
Short-Term Perspective
- Entry near technical support (~₹1,487–₹1,494) is potentially attractive, with clear stop-loss levels and upside targets towards ₹1,513–₹1,520 as immediate resistance.
- Momentum traders may look to capitalize on sustained volume and supportive oscillators, especially as the stock approaches previous highs.
Medium-Term Perspective
- Ongoing bullish crossover on MAs and the approach of deal-related catalysts justify a view towards retesting the 52-week high (₹1,807.70) within the next few quarters.
- Upcoming quarterly results and any margin-positive updates may fuel further acceleration.
Long-Term Perspective
- For investors with a 2–3 year outlook, Tech Mahindra's focus on AI, consulting, and high-growth verticals; commitment to dividend payouts; and strategic margin roadmap combine to offer compounding potential.
- Participation as a core Indian IT sector holding is further validated by global digitalization and the underlying demographic dividend in India.
Positioning at current levels—near the confluence of technical support and before major catalysts—seems to represent an excellent opportunity, particularly as the next phase of margin and earnings expansion takes shape.
Is it the Right Time to Buy Tech Mahindra?
Summing up: Tech Mahindra’s transformation over the past year offers a compelling blend of operational resurgence, margin leadership, robust deal flow, and strategic clarity—underpinned by a Board and management team with a proven record of execution.
- Accelerating EBIT and net profit growth
- Record deal momentum and robust order pipeline
- Expanding dividend payouts (2.68% yield)
- Favorable technical undercurrents and liquidity
- Clear margin and innovation-driven roadmap
…strongly reinforces the case for renewed consideration by investors seeking quality, growth, and defensive dividends in the Indian tech sector.
While past outperformance sets a high bar, the present configuration of value-creating catalysts and technical resilience suggests that Tech Mahindra may be entering a new bullish phase—one that could see substantial re-rating as operational targets come to fruition. In a sector defined by innovation and global demand for high-value services, Tech Mahindra stands at the forefront, offering investors a remarkable blend of stability, growth, and upside potential.
In this context, Tech Mahindra’s stock seems poised at a promising inflection point, well worthy of close attention as a cornerstone in India’s evolving technology investment landscape.
How to buy Tech Mahindra stock in India?
Buying shares of Tech Mahindra online is straightforward and secure for investors in India, thanks to the robust regulatory environment. Today, two main methods are available through regulated brokers: you may opt for traditional spot buying to own the shares outright, or trade Contracts for Difference (CFDs) to speculate on the share price without owning the stock. Both routes are accessible via trusted platforms, with strong investor protection. Each method has its advantages, which we summarize below. To help you choose, you’ll find a comparison of leading brokers further down the page.
Spot Buying
When you buy Tech Mahindra shares for cash through a broker, you become a direct shareholder and your investments are held in your demat account. This approach suits long-term investors seeking dividends and voting rights. Indian brokers typically charge a flat commission per trade, often around ₹20–₹30, and there might be small regulatory or demat charges as well.
Example
Suppose Tech Mahindra shares are trading at ₹1,495 per share. With a ₹85,000 investment (approximately $1,000), and a brokerage fee of ₹400 (about $5), you could purchase around 56 shares (₹1,495 × 56 = ₹83,720; total outlay including fees ≈ ₹84,120).
✔️ Gain scenario
If the Tech Mahindra share price rises by 10%, your 56 shares are now worth ₹1,644 each—a portfolio value of ₹92,064.
Result: +₹8,344 gross gain, or +10% on your initial investment.
Trading via CFD
CFDs (Contracts for Difference) are financial instruments that let you speculate on Tech Mahindra’s share price without actually owning the underlying stock. Instead, you agree with the broker to exchange the difference in the share price between the opening and closing of your trade. CFDs enable leverage, so you can control a larger position with a smaller upfront investment. Typical fees include the broker’s spread (the difference between buy and sell prices), as well as an overnight financing charge if you hold your CFD for longer than a day.
Example
You open a CFD position in Tech Mahindra with ₹85,000 (roughly $1,000) and select 5x leverage. This means you have exposure to ₹425,000 worth of shares.
✔️ Gain scenario
If the price increases by 8%, your position moves up by 8% × 5 = 40%. Your investment appreciates by ₹34,000 (₹85,000 × 40%).
Result: +₹34,000 gain on your ₹85,000 stake (excluding fees).
Final Advice
Before making a decision, always compare broker fees and service conditions—they can differ materially and affect your overall returns, especially with leveraged products. The best approach depends on your investment goals: spot buying suits long-term investors seeking steady growth and dividends, while CFD trading appeals to those looking for short-term opportunities with leverage. For a detailed, side-by-side cost and feature comparison, refer to the broker tables further down the page.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying Tech Mahindra stock
📊 Step | 📝 Specific tip for Tech Mahindra |
---|---|
Analyze the market | Review Tech Mahindra’s recent financial results, margin improvements, deal wins, and compare its premium P/E (34.43) with Indian IT peers before deciding your entry point. |
Choose the right trading platform | Use an established Indian broker or online trading app with access to the NSE, competitive brokerage fees, and robust research tools for informed Tech Mahindra trades. |
Define your investment budget | Allocate a portion of your portfolio to Tech Mahindra suited to your risk tolerance, considering its moderate volatility (Beta 0.89) and regular dividend income. |
Choose a strategy (short or long term) | For long-term investors, Tech Mahindra offers exposure to AI-driven growth and dividend yield; short-term traders can leverage current bullish technical indicators and monitor support/resistance levels. |
Monitor news and financial results | Stay updated with Tech Mahindra’s quarterly earnings, deal announcements (especially in AI and BFSI), analyst reports, and sector developments in Indian and global IT. |
Use risk management tools | Place stop-loss orders near major support levels (e.g., ₹1,487.9) and consider periodic portfolio reviews to manage downside risk in case of broader market corrections. |
Sell at the right time | Plan to book profits if the stock approaches key resistance zones (like ₹1,519.9) or before major events that could trigger volatility, like earnings or sector downgrades. |
The latest news about Tech Mahindra
Tech Mahindra delivered strong Q4 FY25 results, highlighted by an 18.7% sequential surge in net profit and a 76.5% YoY jump. The company reported net profit of ₹1,167 crores, attributed to substantial improvement in EBIT margins and operational efficiencies, with EBIT up 48.5% YoY. Revenue also posted a modest yet stable 4.0% increase year-over-year, reaching ₹13,384 crores, while the recommended final dividend of ₹30 per share brings the total payout for FY25 to ₹45, reflecting over a 100% payout ratio. Analysts have cited this robust margin expansion and strong bottom-line growth as key positives for ongoing investor confidence in India’s IT sector.
New large deal wins in FY25 reached a record $2.7 billion, registering 42.5% YoY growth and underpinning a positive business outlook. This momentum in total contract value is a strong indicator of Tech Mahindra’s enhanced execution capabilities and growing relevance across digital transformation projects, especially in domestic verticals such as manufacturing, BFSI, and healthcare. The win pipeline not only strengthens revenue visibility for FY26 but also demonstrates client trust in the company’s service offerings amidst a competitive Indian market landscape.
Tech Mahindra’s technical indicators have turned moderately bullish, with the share price now above key short-term moving averages and momentum oscillators signaling positive bias. The stock trades above its 20-day and 50-day moving averages, and the Relative Strength Index (RSI) at 62.4 lies in a slightly bullish zone, while the MACD remains above both the center and signal lines. Six out of nine oscillators are in the bullish zone, reflecting improved sentiment, and the stock’s beta of 0.89 highlights relative stability compared to the broader market—a factor that resonates well with Indian investors looking for resilience amid volatility.
The company’s strategic initiatives—particularly its “AI Delivered Right” framework, new consulting practice, and the opening of a Manufacturing Xperience Centre in Chennai—reinforce its leadership in innovation and talent within India. These initiatives are backed by strong partnerships with global technology players like Google Cloud and Qualcomm and are expected to drive pilot programs and scaled deployments for Indian clients. The Chennai Centre, in particular, strengthens Tech Mahindra’s domestic manufacturing clientele, empowering Indian enterprises to accelerate AI-driven operational transformation.
Tech Mahindra continues to deliver investor-friendly policies, announcing a final dividend and maintaining a healthy liquidity position of ₹7,656 crores at FY25-end. With an above-average dividend yield of 2.68% and a total ₹45 per share payout, the company appeals to Indian investors seeking stable returns amid subdued sector growth. The strong cash position enables ongoing investments in digital capabilities and provides a buffer against near-term economic uncertainty, further enhancing the company’s attractiveness in the Indian equity landscape.
FAQ
What is the latest dividend for Tech Mahindra stock?
Tech Mahindra currently pays a dividend. For the financial year 2024-25, the company recommended a final dividend of ₹30 per share, bringing the total for the year to ₹45 per share. This represents a robust payout ratio of 104%, supported by strong cash generation. The dividend yield is about 2.68%, a level that appeals to income-seeking investors and highlights Tech Mahindra’s commitment to rewarding shareholders regularly.
What is the forecast for Tech Mahindra stock in 2025, 2026, and 2027?
Based on the current share price of ₹1,494.60, the projected value for Tech Mahindra at the end of 2025 is ₹1,942.98. By the end of 2026, the estimate rises to ₹2,241.90, and for 2027, it reaches ₹2,989.20. The company is actively investing in artificial intelligence, consulting, and margin improvement, which could drive further performance in line with sector growth trends.
Should I sell my Tech Mahindra shares?
Holding onto your Tech Mahindra shares may be appropriate, given the company’s established reputation and recent margin expansion. With robust deal wins, a resilient strategy focused on AI and digital services, and a solid dividend track record, Tech Mahindra demonstrates mid- to long-term growth potential. While valuation is above some peers, its fundamentals remain strong and the outlook for the Indian IT sector supports a case for patience and continued exposure.
How are dividends and capital gains from Tech Mahindra stock taxed in India?
Dividends received from Tech Mahindra are taxable in the hands of shareholders as per their applicable income tax slab, following Indian tax norms. For capital gains, profits from shares held for more than one year are treated as long-term and taxed at 10% (plus surcharge and cess) if gains exceed ₹1 lakh; short-term gains are taxed at 15%. No special schemes like PPF or ELSS apply to Tech Mahindra shares, and there is no dividend withholding tax for resident investors, but non-resident investors may face TDS as per regulations.
What is the latest dividend for Tech Mahindra stock?
Tech Mahindra currently pays a dividend. For the financial year 2024-25, the company recommended a final dividend of ₹30 per share, bringing the total for the year to ₹45 per share. This represents a robust payout ratio of 104%, supported by strong cash generation. The dividend yield is about 2.68%, a level that appeals to income-seeking investors and highlights Tech Mahindra’s commitment to rewarding shareholders regularly.
What is the forecast for Tech Mahindra stock in 2025, 2026, and 2027?
Based on the current share price of ₹1,494.60, the projected value for Tech Mahindra at the end of 2025 is ₹1,942.98. By the end of 2026, the estimate rises to ₹2,241.90, and for 2027, it reaches ₹2,989.20. The company is actively investing in artificial intelligence, consulting, and margin improvement, which could drive further performance in line with sector growth trends.
Should I sell my Tech Mahindra shares?
Holding onto your Tech Mahindra shares may be appropriate, given the company’s established reputation and recent margin expansion. With robust deal wins, a resilient strategy focused on AI and digital services, and a solid dividend track record, Tech Mahindra demonstrates mid- to long-term growth potential. While valuation is above some peers, its fundamentals remain strong and the outlook for the Indian IT sector supports a case for patience and continued exposure.
How are dividends and capital gains from Tech Mahindra stock taxed in India?
Dividends received from Tech Mahindra are taxable in the hands of shareholders as per their applicable income tax slab, following Indian tax norms. For capital gains, profits from shares held for more than one year are treated as long-term and taxed at 10% (plus surcharge and cess) if gains exceed ₹1 lakh; short-term gains are taxed at 15%. No special schemes like PPF or ELSS apply to Tech Mahindra shares, and there is no dividend withholding tax for resident investors, but non-resident investors may face TDS as per regulations.