Tech Mahindra shares rally nearly 10% on new CEO appointment. Buy/hold?

[{"selector":"#anim-dfdd5385-65c1-42ff-ae49-2c4e1ff8fd57","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6f3c9c1a-6cc6-408e-9e2e-0b603f80d246","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Shares of Tech Mahindra rallied nearly 10% to ₹1,164 apiece on the BSE in Monday's early trading session after the company

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[{"selector":"#anim-69fe5bf5-c539-4758-a423-cf5f230e7eef","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a73d5c46-5ad5-42a0-9114-db600e612e8f","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Mohit Joshi will join well before that date to allow sufficient transition time, as per Tech Mahindra. He may join in June 2023 given Infosys has announced his resignation effective March 11

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[{"selector":"#anim-de8bf363-ca4a-46aa-84c9-41536cd40cbe","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-93f10bad-a9fe-4ffb-ac8d-565bff22c8e1","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] "The appointment of Mr Mohit Joshi clearly signals a change in strategy for TechM given his non-telecom background. That said

[{"selector":"#anim-bed979c3-2bb6-48f6-b1a5-6fe8cdb46725","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e23f293f-f1ed-452d-8f4e-9865e650abf0","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] we believe the new CEO would need to do lot of work to turn around TechM’s operations. Accordingly, in the meantime, TechM might underperform peers

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[{"selector":"#anim-84673d4c-7b9e-480b-bc79-57e7be708d27","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-14d484f0-d823-4111-bb46-239d5ca454ac","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] With the announcement of the CEO-designate, the company and the CEO-designate face the real challenge, as per analysts

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[{"selector":"#anim-fcce4a5d-a09f-4d2c-a7fd-d5fbd0a0488a","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f392b04c-a908-4fe1-adcc-39f4e4c422a2","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] “Market may react positively in anticipation of new strategy roll-out by the new CEO to revive the performance of Tech Mahindra. However,

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[{"selector":"#anim-38af4872-3242-4b34-9879-3f980c1481b0","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a4fb410a-46f0-4b8a-9e7b-905e60907e21","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] reviving growth fundamentals is likely to be a gradual process," ICICI Securities said in a note.

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