Tech Mahindra to gain from 5G roll-out; non-telecom revenues to improve

Its operating profit is expected to improve 24% annually over FY18-21

The Tech Mahindra (TechM) stock has been one of the biggest gainers among large-cap information technology (IT) service companies, up 72 per cent over the past year. With the telecom vertical (43 per cent of its revenues) expected to do well, given the slew of 5G launches by operators globally, the Street believes the company is well placed to sustain the gains. 

Since software service providers have to deliver solutions well in advance of launch of telecom operations, expect these gains to soon reflect in TechM’s numbers. Analysts at Goldman Sachs say the company is prepared with the right set