We have given TechM a target PE multiple of 21x (5% premium to Satyam and 11% to HCL Tech) mainly on account of better revenue visibility, superior
management quality and higher return ratios. On FY09E fully diluted earnings of Rs86.4, the target price works out to Rs1,815 implying an upside of 27% from the current levels. We initiate coverage on TechM with a Buy recommendation.
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