Mindtree - Earnings upgrade nearing fag end, cut to HOLD - Emkay

- We cut our rating on Mindtree to HOLD (V/s ACCUMULATE earlier) with a revised TP of Rs 1,500 (V/s Rs 1,540 earlier) as we see 'earnings upgrade cycle nearing fag end'

- Mindtree continues to do well with it's focused approach to client mining within focus verticals ('sub segments within verticals) that continues to help drive strong performance in the IT Services segment

- Margins have improved by ~500 bps over FY12-14E aided largely by currency depreciation. We reckon that changing mix of business should limit margin improvement ahead

- Cut FY15/16E EPS by 4/3% to Rs 128/149 on lower margin assumptions (possible downside risks here). Recent change in dividend payout policy a welcome change.

Source : Equity Bulls

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