CMP: 685

Tech Mahindra Ltd. develops and markets computer software. The Company markets software for telecommunications equipment manufacturers, telecom service providers, software vendors, and systems integrators.

Tech Mahindra is a good bet in mid-cap IT space, well on its way to become a large-cap. Its currently trading at a P/E of little over 15 with decent dividend yields. It runs at a debt of 1806 Crores (Used for Satyam acquisition i believe) with 192 Crores cash in hand. Debt to Profits ratio is around 3 which is little above safe levels. Revenues have risen from 2753 Crores to 4965 Crores in the last 5 years. Profits have picked up from 65 Crores to 697 Crores in the last 5 years. NPM has taken off from little over 2% to 14% over the last 5 years. Buy and hold for long term gains.