Morgan Stanley resumed coverage of Tech Mahindra Ltd at "overweight" and a target price of Rs 1,650,saying shares remain undervalued and a re-rating can continue. The bank said it believed the company's revenue growth over the next 2-3 years could surpass its and consensus expectations. It highlighted margin surprise,acquisition of treasury shares,acquiring other Mahindra group IT companies and higher dividend payout as key to further re-rating. Tech Mahindra shares were up 3.55 per cent at 3 pm.
