homebusiness Newscompanies NewsDo you own Tech Mahindra and Mphasis shares? Check JPMorgan's latest price targets for them
Do you own Tech Mahindra and Mphasis shares? Check JPMorgan's latest price targets for them
By CNBCTV18.com Apr 21, 2023 12:16:49 PM IST (Published)
Leading IT companies such as TCS, Infosys and HCLTech have highlighted weaknesses and challenges in BFSI, Telecom, Hi-tech, Manufacturing and retail verticals as clients ramp down, cancel and defer projects.
Brokerage JP Morgan has reduced its revenue estimate by up to 3-8 percent for IT companies Tech Mahindra and Mphasis for financial year 2024 and 2025, due to challenges faced by BFSI, telecom and hi-tech customers in the western markets.
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Lower revenue would drive around 7 percent and 10 percent cut in earnings per share (EPS) estimates for Tech Mahindra, JPMorgan said.
For Mphasis, a 30-40 basis points impact on margin in financial year 2024-2025 will lead to a 8 percent and 9 percent EPS cut over the next two financial years respectively.
This is Tech Mahindra's second downgrade in the last four days, after Citi downgraded the stock to sell, citing risks to the communication vertical.
Shares of Tech Mahindra is down 2.3 percent at Rs 998, while Mphasis is down by 0.5 percent.
(Edited by : Rukmani Krishna)
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