Tech Mahindra shares jump 7.6% after Q2 results, Jefferies upgrades stock

Tech Mahindra's shares surged by over 7 percent following the IT services firm's strong Q2 results, as reported on Monday. The company's consolidated net profit surged 32.8 percent year-on-year to ₹1,586 crore, outpacing the 15.6 percent revenue growth. The impressive profit growth caught the attention of brokerages, leading to differing opinions on Tech Mahindra's stock.

Jefferies upgraded its rating to "hold" from "underweight" and raised its target price to ₹1,540, citing an improving growth outlook and visible turnaround. Motilal Oswal reiterated its buy call and revised its target price to ₹1,950, implying an 18 percent upside. Kotak Securities maintained its buy rating and increased its target price to ₹1,870.

Conversely, Citi remained cautious, retaining its sell rating and target price of ₹1,355. The stock traded at ₹1,764.40, a 7 percent increase, from its previous close of ₹1,650 at 10:32 am. The interim dividend of ₹15 per share was declared for FY27, equivalent to a 300 percent increase. Additionally, Tech Mahindra approved a 1:1 bonus issue subject to shareholder approval.