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Tech Mahindra Ltd (532755) Fair Value & Analysis

Information Technology · IN · Market cap ₹1.6T (≈ $16.7B)

TM Tech Mahindra Ltd 532755 · BSE
Price₹1,586
Fair Value₹922.45
Upside-41.8%
Quality74/100
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Strengths

Low debt

Risks

!Trades 72% ABOVE our fair value of ₹922.45
!Mixed Growth (revenue 5y +7.5 %/yr)
!Thin margins · 0.0% net margin
!Mixed vs. peers (5/10)
Mixed Growth (revenue 5y +7.5 %/yr)
Thin margins · 0.0% net margin
Low debt
Mixed vs. peers (5/10)
Evidence: High Range ₹612.08 – ₹1,292 Share as image

Fair value as of: Aug 28, 2026

From 26 valuation models · updated today

Fair value updated Aug 28, 2026, revised from ₹769.84 to ₹922.45 (+19.8%) since Aug 13, 2026.

A solid business, but trading 72% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹1,292). The favourable scenario is already priced in.
  • A fairly wide model range (₹612.08 to ₹1,292) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,806 ₹950.40 Fair Value ₹922.45 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range ₹950.40 – ₹1,806 · fair‑value band ₹612.08 – ₹1,292 · the ₹1,586 price screens above the ₹922.45 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Tech Mahindra Ltd (532755) currently trades at ₹1,586, while our model-based Fair Value estimate is ₹922.45, implying the stock looks roughly 41.8% overvalued today. The Quality Score stands at 74/100 (solid quality), in the Information Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

The stock trades on a trailing P/E of 32.9 (as of Jul 4, 2026). Fundamentals as of Aug 28, 2026

Our scenario range runs from ₹612.08 (bear case) to ₹1,292 (bull case); at ₹1,586, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 22% above its 52-week low. For context, the median of 10 Information Technology peers we cover trades at -27% fair-value upside, at -42%, 532755 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹653.71 ₹958.31 ₹1,410 80
Residual Income ₹287.68 ₹351.87 ₹712.81 76
Rev-Margin DCF ₹533.95 ₹808.65 ₹1,118 74
All 26 models by family
DCF Models
FCF DCF ₹638.44 ₹974.52 ₹1,501 38
Owner Earnings ₹675.60 ₹1,032 ₹1,592 31
5Y Revenue Exit ₹533.95 ₹804.72 ₹1,144 39
5Y EBITDA Exit ₹793.32 ₹1,282 ₹1,845 41
5Y P/E Exit ₹758.48 ₹1,218 ₹1,692 38
10Y Revenue Exit ₹550.65 ₹808.20 ₹1,141 36
10Y EBITDA Exit ₹733.42 ₹1,144 ₹1,681 37
10Y P/E Exit ₹710.84 ₹1,099 ₹1,563 35
Earnings-Based
Graham-Dodd ₹287.55 ₹821.97 ₹1,084 54
Lynch FV ₹168.43 ₹240.61 ₹312.79 50
PEG = 1.0 ₹168.43 ₹240.61 ₹312.79 46
EPV ₹441.92 ₹514.08 ₹578.22 59
Dividend Discount
Gordon GGM ₹370.92 ₹809.77 ₹1,362 70
DDM Multi-Stage ₹370.92 ₹602.82 ₹843.91 61
Multiples
P/E Multiple ₹888.02 ₹1,184 ₹1,480 63
P/S Multiple ₹539.15 ₹718.87 ₹898.59 58
P/B Multiple ₹539.15 ₹718.87 ₹898.59 55
EV/EBIT ₹964.67 ₹1,275 ₹1,586 53
EV/EBITDA ₹980.56 ₹1,296 ₹1,612 54
EV/Revenue ₹504.03 ₹705.89 ₹907.74 43
Asset-Based
NCAV (Graham) ₹136.07 ₹182.34 ₹272.14 50
Growth DCF
Growth DCF ₹653.71 ₹958.31 ₹1,410 80
Rev-Margin DCF ₹533.95 ₹808.65 ₹1,118 74
Economic Profit
Residual Income ₹287.68 ₹351.87 ₹712.81 76
ROIC Compounder ₹468.29 ₹588.21 ₹730.98 72
Growth Earnings
Growth-Adj P/E ₹696.72 ₹995.32 ₹1,294 68

Widest divergence: DCF Models (₹1,032) versus Asset-Based (₹182.34). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 32.9 as of Jul 4, 2026
P/S ratio 2.64 P/E × margin
EPS (TTM) ₹57.54 price ÷ EPS = P/E 32.9
Net margin 8.0% FY2024
Return on equity 2,081% TTM
Return on assets (EBIT) 12.0% avg 5y

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 72 · Market factors (momentum, volatility) 47

Profitability 70
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 61
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Tech Mahindra Ltd reported revenue of ₹530B in FY2024 versus ₹379B in FY2020, a compound +8.8%/yr. Reported net income was ₹42.5B in FY2024, compounding −1.0%/yr from FY2020.

Growth Quality 72/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
₹530B
Latest YoY
+1.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.5%
Avg. revenue growth/yr (8Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.8%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−2.2% (-2.2 + 0.0)
Revenue +8.8%/yr
FY20 ₹379B
FY21 ₹446B
FY22 ₹533B
FY23 ₹520B
FY24 ₹530B
Net income −1.0%/yr
FY20 ₹44.3B
FY21 ₹55.7B
FY22 ₹48.3B
FY23 ₹23.6B
FY24 ₹42.5B

532755 screens 42% overvalued. Compare with CEINSYSTECH →

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Cite: Fair Value Calculator (2026). "Tech Mahindra Ltd Fair Value". https://www.fairvalue-calculator.com/stock/532755

Peer Group

IT Services · 37 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 74 · Top 25%
Fair Value upside −42% · Below median
Return on assets 0% · Below median
Net margin (TTM) 0% · Bottom 25%
Operating margin (TTM) 0% · Below median
Revenue growth 0% · Above median
Dividend yield (TTM) 2.4% · Top 25%

Valuation Multiples vs IT Services median · lower = cheaper

P/E (TTM) 32.9× · Pricier than median
P/B 0.06× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 0
PAST0 · sector 15
HEALTH100 · sector 100
DIVIDEND49 · sector 5

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more IT Services stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
CEINSYSTECH CEINSYSTECH ₹796.45 ₹586.06 -26%
BLUECLOUDS BLUECLOUDS ₹22.11 ₹16.20 -27%
DANLAW DANLAW ₹1,387 ₹943.97 -32%
ConnectM Technology Solutions, Inc CNTM $4.50 $7.60 +69%
SOFTSOL SOFTSOL ₹193.45 ₹69.00 -64%
ITCONS ITCONS ₹251.00 ₹104.00 -59%
ALPHALOGIC ALPHALOGIC ₹42.22 ₹13.55 -68%
CNINFOTECH CNINFOTECH ₹88.53 ₹138.32 +56%
Data Storage Corporation DTSTW $0.0771 $0.0776 +1%
CRESSAN CRESSAN ₹2.13 ₹0.7300 -66%

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Frequently asked questions

Is Tech Mahindra Ltd (532755) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of ₹922.45 versus a price of ₹1,586, about −42% (overvalued).
What is the fair value of 532755?
Our model-based fair value for Tech Mahindra Ltd is ₹922.45 (as of Aug 28, 2026), built from audited fundamentals. The current price: ₹1,586.
What is the quality score of 532755?
Tech Mahindra Ltd has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of 532755?
The net profit margin of Tech Mahindra Ltd is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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