What should investors do with Mindtree post Q4 earnings: Buy, sell or hold?

Company's consolidated revenue grew by 4.2 percent quarter-on-quarter to Rs 2,109.3 crore.

Moneycontrol News
April 19, 2021 / 10:26 AM IST
 
 
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Mindtree share price rose more than 2 percent in the early trade on April 19 after the company reported its fourth quarter earnings.

The company reported 2.8 percent sequential decline in consolidated profit at Rs 317.3 crore for the quarter ended March 2021.

Consolidated revenue grew by 4.2 percent quarter-on-quarter to Rs 2,109.3 crore and the dollar revenue at $288.2 million was up by 5.2 percent from the previous quarter.

Here is what brokerages have to say on the stock and company after Q4 earnings:

Morgan Stanley | Rating: Overweight | Target: Raised to Rs 2,300

The revenue growth was better than expectations & margin was above the consensus. The management aims for double-digit revenue growth with 20%+ margin in FY22.

Macquarie | Rating: Neutral | Target: Raised to Rs 2,000

Research house raises FY22-23E EPS estimates by 6-13%. The Q4 results were ahead of estimates, led by better margin performance. The orderbook growth & strong pipeline will help post double-digit growth.

Motilal Oswal | Rating: Neutral | Target: Rs 2,180

The stock is currently trading at 23x FY23E EPS. It has been one of the best performers in the IT sector in the last one-year, with returns of 175%. The key positives are already captured, and we see limited upside hereafter.

The management’s increased focus on annuity revenue and tail account rationalization is already reflected in revenue and client mixes.

A stable outlook for the top account, decent deal signings, and the ability to sustain improved margin are key positives

Prabhudas Lilladher | Rating: Buy | Target: Rs 2,567

Company is experiencing strong traction in Healthcare vertical and they will start reporting revenues in this vertical from 1QFY22. They reported strong sequential growth in deal win TCV of USD 375mn, +20% QoQ, -5% YoY.

We believe company can achieve industry leading growth in FY22 given i) ability to drive strong broad-based growth ex-travel ii) Healthy FY21 order book of USD 1.38 bn +12% YoY iii) Strong deal win momentum anticipated for FY22 and iv) material addition of revenues from healthcare vertical, v) Pick up in BFSI vertical.

At 09:29 hrs Mindtree was quoting at Rs 2,093, up Rs 25.40, or 1.23 percent on the BSE.

The share touched a 52-week high of Rs 2,275.10 and a 52-week low of Rs 712 on 12 April, 2021 and 13 April, 2020, respectively.

Currently, it is trading 8 percent below its 52-week high and 193.96 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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TAGS: #Buzzing Stocks #Mindtree
first published: Apr 19, 2021 10:26 am