Tech Mahindra shares advanced on Tuesday despite the IT major reported 12.58 per cent fall in net profit at Rs 750.11 crore for the quarter ended June 30, 2016 against Rs 858.10 crore in the sequential quarter ended March 31, 2016. However, gross sales of the company jumped marginally 0.54 per cent qoq to Rs 6,920.93 crore. Shares of Tech Mahindra\u00a0closed 1.79 per cent up at Rs 498.45. According to Prabhudas Lilladher, Tech Mahindra's Q1FY17 revenues were slightly ahead of estimates; however, margins were a miss. The brokerage house maintained 'Buy' on Tech Mahindra shares with a target price of Rs 565.\u00a0However, Angel Broking in a note said "Tech Mahindra reported lower-than-expected results for the quarter ended June 30, 2016." Consolidated operating profit of the IT company slid by 3.94 per cent year-on-year to Rs 12,74.95 crore.\u00a0On a year-on-year basis, consolidated net profit and gross sales of the company grew by 20.50 per cent and 9.96 per cent, respectively. According to JM Financial, Tech Mahindra had a soft start to FY17 due to a weak performance in acquisitions. But organic telecom business revived, enterprise business held steady and deal wins were healthy. Post results, the bokerage house lowered Tech Mahindra's 2016-17 and 2017-18 EPS forecasts by 10 per cent and 18 per cent, also factoring the contraction in LCC\u2019s portfolio. Tech Mahindra\u2019s inorganic moves have not played as per JM Financial's earlier view and recovery in the telecom vertical has been slower-than-expected. Still, at 12x FY18 PER and low expectations, risk-reward appears favourable. JM Financial maintains 'Buy' on Tech Mahindra shares with target price of Rs 600.