May 28, 2018 / 5:26 AM / in 3 months

BUZZ-India's Tech Mahindra falls most in a year

** Software services firm Tech Mahindra Ltd’s shares fall as much as 5.8 pct to 662.35 rupees in biggest pct loss since May 29, 2017

** Co’s Q4 net profit more than doubles to 12.22 bln rupees ($181.3 mln), beating analysts’ average estimate of 9.34 billion rupees, according to Thomson Reuters data

** Communications segment contributed 41.6 pct to total revenue in the qtr, compared with 46.3 pct year ago; Nomura analysts says telecom sluggishness keeps them “cautious on growth”

** CLSA analysts say further margin expansion depends either on a growth recovery in telecom or a rise in offshore leverage and that looks unlikely; raise PT to 600 rupees from 540 rupees, and ‘sell’ rating

** Co’s sharp cuts to headcount have “shrunk its bench and reduced its ability to react to improving demand conditions, and we expect it to lag the growth recovery in FY19-20,” CLSA analysts say

** Macquarie says outlook for telecom business remains muted, as it expects 5G spend to be at least a year away

** Nearly 5.6 mln shares change hands by 0523 GMT, vs 30-day avg trading volume of 3.1 mln

** Twenty four of 40 brokerages rate stock “buy” or higher, eight “hold” and rest “sell” or lower; their median PT is 675 rupees ($1 = 67.4050 Indian rupees)

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