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Tech Mahindra Limited (TECHM) Fair Value & Analysis

Technology · IN · Market cap ₹1.3T

TM Tech Mahindra Limited TECHM · NSE
Price₹1,632
Fair Value₹1,955
Upside+19.8%
Quality70/100
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Healthy Growth
Thin margins · 8.5% net margin
Low debt · generates free cash flow
3.58% dividend yield
Ranks above peers (10/15)
Moderate moat 56/100
Evidence: High Range ₹1,466 – ₹2,444 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 27 days ago

Fair value updated Jul 12, 2026, revised from ₹1,086 to ₹1,955 (+80.0%) since Jun 24, 2026. Share price +12.8% over the past month.

A solid business, screening 20% undervalued on our models.

What matters now

  • Our model range runs from ₹1,466 (bear) to ₹2,444 (bull), base ₹1,955. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 70/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

₹1,724 ₹777.02 Fair Value ₹1,955 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ₹777.02 – ₹1,724 · fair‑value band ₹1,466 – ₹2,444 · the ₹1,632 price screens below the ₹1,955 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Tech Mahindra Limited (TECHM) currently trades at ₹1,632, while our model-based Fair Value estimate is ₹1,955, implying the stock looks roughly 19.8% undervalued today. We read business quality at 70/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Tech Mahindra Limited generated revenue of ₹568B at a net margin of 8.5%. Revenue grew 12.6% year over year. It earns a return on equity of 16.6%. The balance sheet holds a net cash position of ₹28.6B. Fundamentals as of Jul 12, 2026

Our scenario range runs from ₹1,466 (bear case) to ₹2,444 (bull case); at ₹1,632, the current price sits within 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 12% below its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -1% fair-value upside, at 20%, TECHM screens cheaper 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 BearBaseBull Evidence
Highest evidence
Growth DCF ₹916.16 ₹1,651 ₹3,004 80
Residual Income ₹366.03 ₹447.16 ₹958.26 76
Rev-Margin DCF ₹832.12 ₹1,435 ₹2,232 74
All 26 models by family
DCF Models
FCF DCF ₹924.81 ₹1,727 ₹3,232 38
Owner Earnings ₹1,007 ₹1,886 ₹3,534 31
5Y Revenue Exit ₹832.12 ₹1,454 ₹2,311 39
5Y EBITDA Exit ₹967.24 ₹1,739 ₹2,724 41
5Y P/E Exit ₹849.99 ₹1,492 ₹2,237 38
10Y Revenue Exit ₹829.34 ₹1,446 ₹2,421 36
10Y EBITDA Exit ₹948.84 ₹1,662 ₹2,782 37
10Y P/E Exit ₹868.61 ₹1,475 ₹2,356 35
Earnings-Based
Graham-Dodd ₹369.31 ₹1,842 ₹2,541 54
Lynch FV ₹497.64 ₹710.92 ₹924.19 50
PEG = 1.0 ₹497.64 ₹710.92 ₹924.19 46
EPV ₹664.86 ₹772.14 ₹867.50 59
Dividend Discount
Gordon GGM ₹437.12 ₹954.32 ₹1,606 70
DDM Multi-Stage ₹437.12 ₹781.74 ₹994.55 61
Multiples
P/E Multiple ₹814.65 ₹1,086 ₹1,358 63
P/S Multiple ₹692.45 ₹923.27 ₹1,154 58
P/B Multiple ₹692.45 ₹923.27 ₹1,154 55
EV/EBIT ₹1,147 ₹1,510 ₹1,874 53
EV/EBITDA ₹1,051 ₹1,383 ₹1,714 54
EV/Revenue ₹791.74 ₹1,107 ₹1,422 43
Asset-Based
NCAV (Graham) ₹167.16 ₹224.00 ₹334.33 50
Growth DCF
Growth DCF ₹916.16 ₹1,651 ₹3,004 80
Rev-Margin DCF ₹832.12 ₹1,435 ₹2,232 74
Economic Profit
Residual Income ₹366.03 ₹447.16 ₹958.26 76
ROIC Compounder ₹763.57 ₹1,035 ₹1,398 72
Growth Earnings
Growth-Adj P/E ₹742.06 ₹1,060 ₹1,378 68

Widest divergence: DCF Models (₹1,492) versus Asset-Based (₹224.00). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹568B
Revenue growth (YoY) +12.6%
Net margin 8.5%
Return on equity 16.6%
Free cash flow ₹54.8B FY2026
P/E ratio 27.4
More key figures
Operating margin 13.8%
EPS (TTM) ₹54.15
Dividend yield 3.4%
EPS growth (YoY) +15.9%
Net cash ₹28.6B FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 73 · Market factors (momentum, volatility) 60

Profitability 66
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 59
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 81
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.

About the company

Tech Mahindra Limited provides information technology services and solutions in the Americas, Europe, India, and internationally. It operates through Information technology Business and Business Process Services segments.

Full company description

Tech Mahindra Limited provides information technology services and solutions in the Americas, Europe, India, and internationally. It operates through Information technology Business and Business Process Services segments. It offers application development maintenance, intelligent automation, testing, performance engineering, cloud consulting, engineering and network, data analytics, and artificial intelligence (AI) services. The company also provides business process services, such as Consulting NXT.NOW, growth accelerators, business-process-as-a-service, service desk, technical assistance, supply chain management, finance and accounting, GIS, analytics, trust and safety, and transformation through technology; customer experience and design services; and cyber security, blockchain, and metaverse services. In addition, it offers ESG consulting and talent pool, energy, resource management, supply chain, and data management and reporting solutions, as well as environment, health, and safety solutions; and digital enterprise applications. Further, the company provides Yantr.ai, a field service management software; Kornea, a cloud-native AI-powered workforce management solution; Populii, an enterprise gig platform; AceFin, an AI-based BPaaS solution; AftEAZE, a digital aftermarket platform; netOps.ai, a cloud platform for telco networks; MobiLytix marketing studio; Epselon automation platform; Entellio, a chatbot platform; Blue Marble solution; and InfoWise for enterprise metadata. It serves banking and financial services; communication; energy and utilities; healthcare and life sciences; hi-tech; insurance; manufacturing; media and entertainment; private equity; oil and gas; professional services; retail and consumer goods; and travel, transportation, hospitality, and logistic sectors. It has a collaboration with NVIDIA Corporation to develop AI powered telco network operations reasoning agent. The company was incorporated in 1986 and is based in Pune, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tech Mahindra Limited reported revenue of ₹568B in FY2026 versus ₹446B in FY2022, a compound +6.2%/yr. Reported net income was ₹48.1B in FY2026, compounding −3.6%/yr from FY2022.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹568B
Latest YoY
+7.2%
Avg. growth/yr (3Y)
+2.2%
Avg. growth/yr (5Y)
+8.5%
Avg. growth/yr (21Y)
+21.5%
Revenue +6.2%/yr
FY22 ₹446B
FY23 ₹533B
FY24 ₹520B
FY25 ₹530B
FY26 ₹568B
Net income −3.6%/yr
FY22 ₹55.7B
FY23 ₹48.3B
FY24 ₹23.6B
FY25 ₹42.5B
FY26 ₹48.1B

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

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 483 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 70 · Top 25%
Fair Value upside +20% · Above median
Return on equity (TTM) 17% · Above median
Return on assets 10% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 13% · Above median
Dividend yield (TTM) 3.6% · Above median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 26.8× · Pricier than median
P/B 4.35× · Pricier than 75% of peers
P/S (TTM) 2.27× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 14.7× · Pricier than median
PEG 1.86× · Pricier than median

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.

VALUE 60 · sector 22
FUTURE 63 · sector 31
PAST 66 · sector 36
HEALTH 100 · sector 97
DIVIDEND 72 · sector 37

Insider activity: 40/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%
LG CNS Co 064400 71,100 KRW 116,932 KRW +64%

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Frequently asked questions

Is Tech Mahindra Limited (TECHM) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ₹1,955 versus a price of ₹1,632, about +20% (undervalued).
What is the fair value of TECHM?
Our model-based fair value for Tech Mahindra Limited is ₹1,955 (as of Jul 12, 2026), built from audited fundamentals. The current price is ₹1,632.
What is the quality score of TECHM?
Tech Mahindra Limited has a Quality Score of 70/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Tech Mahindra Limited (TECHM)?
Tech Mahindra Limited reported trailing-twelve-month revenue of about ₹568B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of TECHM?
The net profit margin of Tech Mahindra Limited is about 8.5%, meaning it keeps roughly 8.5% of revenue as net income. Based on the latest reported figures.
Does Tech Mahindra Limited pay a dividend?
Tech Mahindra Limited currently shows a dividend yield of about 3.43% relative to its recent price (as of Jul 12, 2026).

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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