Tech Mahindra is the top gainer on Nifty 50 and Nifty IT in the last 30 days.
After the company gave double digit growth guidance for FY22 and showed potential business opportunities in the 5G space, analysts have remained positive on the stock.
The market share of the large cap IT company stood at ₹1.33 lakh crore as of August 13.
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Shares of Tech Mahindra have gained 31% in the last 30 days as analysts remain positive on the information technology (IT) company’s growth prospects on good opportunities in the 5G space.
Tech Mahindra is known for its strong play in network infrastructure services compared to its peers.
“The company is well invested in capturing opportunities from the expansion of the 5G value chain across networks and IT services from both telecom service providers and enterprises,” said a report by broking firm Sharekhan.
On July 30, the stock had surged about 8% as the company gave double digit growth guidance of more than 10% in revenue growth for FY22. In June quarter earnings call, the management indicated that almost 60-70% of its new signings in the telecom segment will be in the area of 5G. Hence, it expects strong deal flow in the 5G space from telecom players and enterprises in the coming quarters.
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Top 5 Nifty 50 gainers in 30 days
% change
Tech Mahindra
31.67%
Bharti Airtel
19.67%
Wipro
16.12%
Tata Steel
15.52%
HCL Tech
15.27%
Analysts at HDFC Securities also have a positive outlook on the company because of “the company’s largest deal win in the healthcare vertical, healthy growth in business process services, increase in intake of freshers after six quarters, improvement in 5G related deals (close to 50% of telecom deals are related to 5G), and continued growth momentum in enterprise segment, led by technology, banking, financial services and insurance (BFSI) and manufacturing verticals.”
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