Home / Markets / Stock Markets /  Debt-free alpha stock gives 232% return vs Nifty's 108% in 5 years. Do you own?

Debt-free alpha stock gives 232% return vs Nifty's 108% in 5 years. Do you own?

Multibagger stock: Tech Mahindra shares have managed to provide decent returns in past and it may continue to enhance shareholders wealth going ahead, believe stock market experts. (Bloomberg)Premium
Multibagger stock: Tech Mahindra shares have managed to provide decent returns in past and it may continue to enhance shareholders wealth going ahead, believe stock market experts. (Bloomberg)

  • Multibagger stock: Tech Mahindra share price has appreciated to the tune of 232 per cent in last 5 years whereas NSE Nifty has gone up around 108 per cent in this period

Multibagger stock: Despite global economy reeling under the outbreak of Covid-19 pandemic for last one and half year and new variant Omicron still looming around, Indian stock market has managed to delivered stellar return in this period. A good number of stocks have entered the list of multibagger stocks in this period. These multibagger stocks include some hidden gems of the Indian markets that have been generating much more return than key benchmark indices. Tech Mahindra share is one of such stocks that has beaten benchmark return in last 5 years by huge margin.

Tech Mahindra share price has appreciated to the tune of 232 per cent in last 5 years whereas NSE Nifty has gone up around 108 per cent in this period. This means, Tech Mahindra share price has generated more return than 50-stock benchmark index. However, stocks market experts are still bullish on the counter as company is a zero-debt company and in the wake of Omicron virus looming around the world, IT companies are expected to remain insulated from the rising global inflation.

Speaking on the zero-debt alpha stock; Ankur Saraswat, Research Analyst at Trustline Securities said, "Tech Mahindra shares have managed to provide decent returns in past and it may continue to enhance shareholders wealth going ahead. It is almost a debt-free company as its current D/E ratio stands at a multiple 0.07." He advised positional investors to accumulate Tech Mahindra shares as and when there is dip in the stock.

Highlighting the reasons for expecting more rise in Tech Mahindra share price; Ravi Singhal, Vice Chairman at GCL Securities said, "Tech Mahindra is an IT company and due to the Omicron threat, global inflation is expected to shoot up. But, It companies are expected remain least affected by this new Covid virus impact on global economy. So, in coming times, Tech Mahindra is expected to give better results in comparison to other sector companies. Apart from this, it is expected to emerge 5G roll-out beneficiary as it provides hardware infrastructure to telecom companies. So, the stock is poised for big gains in long-term."

Advising investors to buy Tech Mahindra shares; Sumeet Bagadia, Executive Director at Choice Broking said, "The IT stock looks promising on chart pattern and it may go up to 1650 in immediate short-term. One can initiate momentum buy in the counter maintaining stop loss at 1500 levels."

On his view for positional investors, Ravi Singhal of GCL Securities said, "One should buy Tech Mahindra shares around 1500 levels maintaining stop loss at 1440 for 6 months target of 1700 per share levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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