New Delhi, June 30 -- The Tech Mahindra Ltd stock is up 17% in the past year, beating sector index Nifty IT's 7% returns. The optimism stems from the company's ongoing efforts to revive its financial performance, which has lagged tier-1 peers due to a different vertical mix.

Tech Mahindra has significant exposure to the communications vertical, which remains under stress. For competitors, a large part of their revenue comes from the relatively better placed banking, financial services and insurance sector.

Going by Tech Mahindra's latest management commentary, it is on track to achieve four key objectives by FY27. These are: revenue growth above peer average, an Ebit (earnings before interest and tax) margin of 15%, return on capital em...