Tech Mahindra's intrinsic value using Intellectual Capital analysis

Tech Mahindra

BSE : 532755

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NSE : TECHM

Industry : IT Services

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ISIN : INE669C01036

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FreeFloat : 53.73%

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FnO : Yes

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LotSize : 600

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty100 Liquid 15 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Quality Low Volatility 30 | Nifty IT | BSE Dividend Stability | Nifty Dividend Opp 50 | Nifty Low Volatility 50 | Nifty100 Low Volatility 30 | Nifty100 Quality 30 | Nifty200 Quality 30 | Nifty50 Value 20 | BSE 100 ESG | BSE CARBONEX | NIFTY 100 ESG Sector Leaders | Nifty100 Enhanced ESG | Nifty100 ESG | BSE TECk | Nifty India Digital | Nifty Services Sector

Intellectual Capital (IC)	70,167.28
Net Worth (NW)	28,735.10
Intrinsic Worth (IW)	98,902.38
Market Cap (MC)	98,974.89
Economic Value Added	103.67

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	70.95%
IC Gross Margin (EBITDA/IC)	14.06%
IC Net Margin (NPT/IC)	8.93%
Knowledge Turnover (Sales/IC)	0.77
Market to Intrinsic Value (MC/IW)	1.00

As Of	Intrinsic Value	Market Price
31 Dec 2022	Rs. 1,015.66	Rs. 1,016.40
20 Mar 2023	----	Rs. 1,109.00
20 Mar 2023	----	-18.15 -1.64%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 1,100.70	Reduce	Buy on Dips
KB > 50% : Yes		50 DMA : Rs. 1,063.13
0 < M2IV < 1 : No		Vol-Price trend : Falling
Disclaimer: Stock outlook is based on data calculations only and does NOT constitute investment advice.

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Mar-20
C
9490.20
9775.40
1417.00
1018.80
965.60
726.40
659.20

Jun-20
C
9106.30
9522.40
1716.70
1333.50
1283.20
955.60
995.90

Sep-20
C
9371.80
9489.30
1820.90
1449.20
1409.30
1063.10
1171.20

Dec-20
C
9647.10
9868.00
2116.90
1758.50
1716.40
1290.10
1245.20

Mar-21
C
9729.90
9762.50
1930.20
1585.80
1544.10
1044.30
1209.00

Jun-21
C
10197.60
10484.90
2163.50
1832.40
1794.30
1365.70
1388.90

Sep-21
C
10881.30
11163.40
2276.50
1933.50
1898.10
1340.90
1469.70

Dec-21
C
11450.80
11673.90
2282.40
1920.30
1886.40
1378.20
1347.70

Mar-22
C
12116.30
12436.10
2412.70
1928.50
1873.30
1545.30
1663.10

Jun-22
C
12707.90
12830.00
2002.50
1525.80
1485.50
1147.50
1207.40

Sep-22
C
13129.50
13419.70
2234.60
1742.90
1663.90
1299.20
1288.90

Dec-22
C
13734.60
13981.80
2382.20
1884.10
1771.20
1285.30
1486.30

* C - Consolidated, S - Standalone