Buy MindTree; target of Rs 1970: ICICI Direct
ICICI Direct is bullish on MindTree has recommended buy rating on the stock with a target price of Rs 1970 in its research report dated January 19, 2021.
January 28, 2021 / 05:00 PM IST
ICICI Direct's research report on MindTree
MindTree reported healthy set of Q3FY21 numbers and were above our estimates. The company reported dollar revenue growth of 5.0%QoQ above our estimate of 3.8% QoQ. The company registered EBITDA margin of 23.1% (up 286 bps QoQ mainly led by higher utilization and offshoring) and was higher than our expectation of 20.7%. The deal pipeline increased 3.0% QoQ and 50.7% YoY (due to low base last year) to US$312 million. The company added 368 employees in the quarter, its utilization increased by 430 bps QoQ to 83.1% and offshore effort mix increased by 70 bps QoQ to 82.8%.
We maintain our BUY rating with a revised target price of Rs 1970/share (22x P/E on FY23E EPS) (earlier TP was Rs 1680).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.