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Apr 23, 2013, 11.18 AM IST | Source: Moneycontrol.com

Kotak Institutional raises Mindtree target price to Rs 900

Kotak Institutional Equities raised its target price on Mindtree to Rs 900 from 850, saying the stock offered good medium-term opportunity.

Moneycontrol Bureau

Kotak Institutional Equities raised its target price on Mindtree to Rs 900 from 850, saying the stock offered good medium-term opportunity.

The mid-tier software services exporter on Monday reported fourth quarter results . Quarterly net profit was down 20 percent quarter-on-quarter (up 14 percent year-on-year) to Rs 79 crore and revenue rose 4 percent sequentially (17 percent YoY) to Rs 612 crore.

The stock ended down more than 2 percent and further slipped over 2 percent on Tuesday. The street may have given it a thumbs down, analysts say results were largely in line with expectations and still sound bullish, despite the 56 percent surge in the stock price in the last one year.

"The stock is a good medium-term bet, courtesy significant improvement in profile of client base and account management, consistency in delivery and execution and inexpensive valuations," Kotak said, advising investors "add" the stock.

Citigroup Global Markets maintained a "buy" on Mindtree, although it has slightly reduced its target price to Rs 1,010 from Rs 1,045.

Valuations at 9.3 times one year forward EPS (earnings per share) still look reasonable, it says. However, it has high leverage to discretionary spends and so a recovery here is key, it warns.

Religare Institutional Research, meanwhile, advises a "hold" on the stock.

"Given the lack of further margin triggers and limited acceleration in growth rates, we see limited scope for further earnings upgrades," it said, maintaining a target price of Rs 870 on the stock.

At 10:15hrs, Mindtree was down 1.6 percent at 836.55 on NSE.

Nachiket Kelkar
nachiket.kelkar@network18online.com   

Mindtree stock price

On November 21, 2014, Mindtree closed at Rs 1215.95, down Rs 18.2, or 1.47 percent. The 52-week high of the share was Rs 1266.00 and the 52-week low was Rs 649.20.


The company's trailing 12-month (TTM) EPS was at Rs 54.21 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 22.43. The latest book value of the company is Rs 210.77 per share. At current value, the price-to-book value of the company is 5.77.

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