MindTree Ltd - Q2FY21 Result Update - ICICI Securities

MindTree reported 3.1% QoQ growth in dollar revenues, mainly led by higher growth in BFSI and retail and CPG & manufacturing. Further, cost efficiency and higher utilisation led margins to improve 340 bps QoQ to 20.3%. The board has recommended a dividend of Rs. 7.5 per share.

Valuation & Outlook

We believe the company's expertise in digital technology will make it a key beneficiary of improved traction in cloud in the coming years. In addition, vendor consolidation opportunities, improving win ratio, increase in annuity business will provide long term visibility to revenues. MindTree's aim to improve margins via employee pyramid, offshoring, pricing, utilisation and annuity business bodes well for profit growth. Based on these factors, we revise our EPS and multiple upwards and maintain BUY with a revised target price of Rs. 1680/share (22x FY23E EPS).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MindTree_Q2FY21.pdf

Shares of MINDTREE LTD. was last trading in BSE at Rs.1427.55 as compared to the previous close of Rs. 1553.5. The total number of shares traded during the day was 220801 in over 16197 trades.

The stock hit an intraday high of Rs. 1584 and intraday low of 1404.3. The net turnover during the day was Rs. 327642397.

Source : Equity Bulls

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