Mindtree share price has fallen 2.5 percent to hit an intraday low of Rs 2,780 on BSE.
The fall comes a day after the Bengaluru-based IT services company reported a 37.3 per cent on-year growth in its consolidated net profit at Rs 471.6 crore for the quarter ending 30 June 2022.
Mindtree’s revenue increased 7.7 per cent to Rs 3,121.1 crore compared with the previous three months. This is a sixth straight quarter of more than 5 per cent revenue growth for the company in constant currency terms. So far this year, Mindtree shares have plunged 41 percent.
However, analysts see up to 69 percent potential rally going forward on the back of strong growth. Should you buy, hold or sell Mindtree shares?
Edelweiss: Buy
According to analysts at Edelweiss Securities, Mindtree posted strong Q1FY23 numbers – revenue grew 4.0 percent QoQ to USD 399.3 mn, beating Street’s estimates of USD389.8mn, while in-line with their estimates of USD400mn. Margins improved 30bp to 19.2 percent, also beating estimates of 18.6%/18.3%. PAT margin came in at 15.1% compared to the estimate of 15.3%/15.1%. “
JM Financial: Hold
Analysts at JM Financial stated that amidst increasing investor concerns on macro deterioration and mixed results from Tier I tech companies that have reported 1QFY23 till date, Mindtree’s performance stands out in contrast as it delivered a 5.5% QoQ c/c growth marking the 6th successive quarter of 5%+ growth.
ICICI Securities: Hold
Analysts at ICICI Securities said that Mindtree’s Q1FY23 print was strong on all fronts including six consecutive quarters of >5% QoQ CC growth; impressive beat on margins; record-high deal TCV; continued pace of hiring. “We are impressed with MTCL’s consistency and disciplined execution on profitability. We continue to value the stock at 23x FY24E EPS of Rs 126 to arrive at a target price of Rs 2,969,” they said.
Motilal Oswal: Neutral
According to the brokerage report, Mindtree management’s increased focus on annuity revenue and strategic accounts is reflected in its revenue and client mix. A strong outlook on strategic accounts, decent deal signings, and the ability to sustain improved margin are key positives for the stock.
