Tech Mahindra shares rose 4.2% to a day's high of Rs 1,642.20 on the BSE after global brokerage company CLSA upgraded the stock to 'Outperform' rating from 'Hold,' with a target price of Rs 1,749 per share.

This target price represents an 11% increase from Monday's closing price. Following a recent market correction, CLSA upgraded the company, citing early signs of execution on EBIT margin improvement.

Furthermore, the global brokerage firm stated in its report that the lack of a significant increase in order bookings recently has been disappointing. A distinct focus on the BFSI, healthcare, and manufacturing sectors indicates that the company's product portfolio is balanced.

After reaching a peak of Rs 1,838 in December 2021, the stock began to depreciate, reaching a low of Rs 943.70 by June 2022. This reduction represents a roughly 49% correction in the share price.

The stock established support at Rs 975 and remained consolidated for approximately a year before continuing its slow upward trend. Since May 2023, the stock has been on an upward trend, with higher highs and lows.

The stock has climbed by 33% over the previous year, and Tech Mahindra shares have increased by 31% in the last six months. Year to date, the stock is up 25.5%.