Tech Mahindra Shares Rockets To Over 11% Even As Citi Maintains 'Sell' Rating

On Thursday, 26 April, Tech Mahindra reported some underwhelming numbers. The Indian IT company reported about a massive drop of 41 per cent year-on-year fall in its consolidated net profit. The net profit fell to Rs 661 crore for the quarter ended March 2024.

Despite Niggles, TechM Soars

That, however does not appear to have deterred the markets from going all in, bullishly on the company in the equity markets. The day's trade (on Friday) started for the Pune-based company with glowing numbers, as it surged above 9 per cent.

This clearly was not a fluke, as the shares prices have only increased in value, since then, in the early hours of the day. At 10:00 IST, the company shares had already surged by a staggering 10.99 per cent, taking the value of each individual share to Rs 1,321.10.

Tech Mahindra Net Profit Tanks 41% To ₹661 Cr In Q4FY24

This development also comes at time, when Citi Group maintained its 'Sell' rating for the the company, with a target price of Rs 1,095.

Coming back to the numbers that were out on 25 April. For the fourth quarter of FY24, Tech Mahindra's revenue slumped by 6.2 per cent to Rs 12,871 crore.

During the full fiscal FY24, the consolidated net profit nose-dived 51.2 per cent year-on-year to Rs 2,358 crore.

The revenue during FY24 at Rs 51,996 crore, translated to a decline of 2.4 per cent over the previous FY.

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The Indian Tech Surge

In addition, Tech Mahindra appears to be leading the pack of resurgent IT players, at least at Dalal Street, as shares of major tech firms are trading in green, at the beginning of the day. Here at 10:08 IST, Infosys, increased by 0.33 per cent to reach Rs 1,443.25 per share. TCS share value also increased by 0.25 per cent, at Rs 3,861.95. Another IT major, Wipro also saw a jump of 1.63 per cent, as the price of each of its shares jumped to Rs 468.50.