Foreign investors push Tech Mahindra near its 52-week low. Read to know the details.
Tech Mahindra, the fifth-largest IT company in India has fallen a massive 36 per cent in the last three months. In fact, the stock has fallen 11 per cent in the last one year bringing the stock near its 52-week low. This is despite the company increasing its FY22 revenue and consolidated profit by 18 and 26 per cent respectively, and increasing its revenue for seven consecutive quarters.
The foreign investors factor
The entire Indian market has been facing the brunt of the FII sellout this year. In fact, FIIs have been the net sellers in the market for last six months. The IT industry has been facing the brunt of this selloff heavily and Tech Mahindra is one of them since FIIs hold more than 30 per cent stake in the company. FIIs have been decreasing their stake continuously for the last five quarters and have decreased their stake in eight of the last 10 quarters.
How were the results?
While the company's share price has been falling, its results are not. In fact, the company posted its highest-ever annual revenue and profits in FY22 and the highest ever quarterly revenue and profits during the March quarter.