Tech Mahindra, a specialist in digital transformation, consulting and business re-engineering, has signed a multi-year contract with Finnish company Ahlstrom, a fiber-based materials company to manage its IT operations. According to the management, the deal size exceeds USD 50 million. Under the agreement, Tech Mahindra has got into a 5-year contract, along with a 2-year extension.

Commenting on the same, Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, ''The company mentioned that on back of deal, the margins might take a hit. We upgrade the company's EPS up by 8.8% for FY2016. We recommend our accumulate recommendations with a target price of Rs 2,788.''

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