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Tech Mahindra - New Ideas, But Scale With Efficiency Remain Key: Dolat Capital

Mgmt maintained an optimistic business outlook, based on strength in network services, new GTM strategies of P&P biz., cocreation.
<div class="paragraphs"><p>An employee holds a cup as she works at her desk inside the Tech Mahindra office building in Noida. (Photo: Adnan Abidi/Reuters)</p></div>
An employee holds a cup as she works at her desk inside the Tech Mahindra office building in Noida. (Photo: Adnan Abidi/Reuters)
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Dolat Capital Report

We attended Investor Day 2023, centered on theme of enabling and transitioning Tech Mahindra Ltd.’s customers from resilience stage bettering relevance.

Commentary on leadership transition was less clear, although Mr. CP Gurnani indicated facilitating a smooth transition before handover. We believe a new Chief Executive Officer would most likely be an external candidate.

We believe three key messages stood out:

  1. greater emphasis on digital engineering (5G, video engineering, electrification),

  2. New go-to-market strategy to combine products and platform biz. (drive non-linearity) and

  3. opportunities in co-creation with customers and partners (new growth channel – should increase to the level of peers).

Overall, management maintained an optimistic business outlook, based on strength in network services, new GTM strategies of P&P biz. and co-creation.

However, we believe these announcements are only mildly positive, and commentary on margin improvement too, is lackluster.

Click on the attachment to read the full report:

Dolat Capital Tech Mahindra Company Update.pdf
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