Tech Mahindra Limited (TECHM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+108.7%

₹3,707.35

vs ₹1,776.00 price

Levered DCF

₹3,617.38

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

7.75

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	25.5×	29.07×	46.68×	20.12×	23.68×	19.58×	12.24×	16.21×
P/B	4.14×	4.52×	4.13×	3.48×	4.9×	3.49×	2.26×	3.43×
P/S	2.16×	2.33×	2.12×	1.82×	2.95×	2.29×	1.34×	2×
EV / EBITDA	13.22×	17.34×	21.66×	11.9×	14.3×	11.5×	8.66×	10.89×
Gross margin	35.6%	31.6%	29.7%	31.9%	29.8%	31.6%	34.2%	36.1%
Operating margin	12.6%	30.9%	28.6%	31.0%	14.7%	14.8%	32.9%	33.9%
Net margin	8.5%	8.0%	4.5%	9.1%	12.5%	11.7%	10.9%	12.4%
Current ratio	1.9×	1.81×	1.8×	1.79×	1.91×	2.42×	2.09×	2.08×
Debt / equity	0.07×	0.09×	0.1×	0.1×	0.1×	0.12×	0.17×	0.1×
Interest coverage	21.2×	50.92×	37.91×	50.76×	40.36×	32.11×	63.21×	88.36×
Dividend yield	3.3%	3.1%	3.6%	4.4%	3.0%	2.0%	5.0%	2.1%
Payout ratio	83.7%	90.4%	166.1%	88.2%	71.5%	39.7%	61.8%	34.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.2%	15.5%	8.8%	17.3%	20.7%	17.8%	18.5%	21.2%
Return on invested capital	15.0%	37.3%	34.1%	36.1%	14.6%	13.1%	32.2%	36.6%
Return on assets	9.7%	9.6%	5.4%	10.5%	12.4%	11.2%	10.8%	12.8%
Free cash flow yield	4.5%	4.2%	5.1%	4.7%	3.3%	8.6%	7.1%	5.2%
Earnings yield	3.9%	3.4%	2.1%	5.0%	4.2%	5.1%	8.2%	6.2%
Enterprise value	₹1.2T	₹1.2T	₹1.1T	₹958.9B	₹1.3T	₹869B	₹499.3B	₹693.2B
Net debt / EBITDA	-0.32×	-0.27×	-0.36×	-0.16×	-0.13×	0.03×	0.1×	-0.05×
Cash conversion cycle (days)	37	49	55	58	62	59	69	69