Exclusive Webinar :Don't miss the latest webinar on Global Investing with Passive Products on June 22, 11am

Neutral Mindtree; target of Rs 2180: Motilal Oswal

Motilal Oswal recommended Neutral rating on Mindtree with a target price of Rs 2180 in its research report dated April 17, 2021.

April 20, 2021 / 04:37 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Mindtree


Mindtree (MTCL) delivered another strong quarter, with USD revenue growth of 5.1% QoQ, above our estimate of 4.3%, driven by robust growth outside of the top 10 accounts (+8.6% QoQ USD) and end of discounts in the Travel and Hospitality vertical (+17% QoQ USD). Deal TCV rose 20% QoQ to USD375m in 4QFY21 and the management indicated that deal pipeline is at a record high. It was able to deliver better than expected EBIT margin in 4QFY21 (18.6%, down 100bp QoQ) as wage hike impact (-240bp QoQ) was partially compensated by operational efficiency and higher utilization (84.3%, +120bp QoQ).



Outlook


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. Our TP of INR2,180 per share implies 24x FY23E EPS. Maintain Neutral.


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.

Broker Research
first published: Apr 20, 2021 04:37 pm

stay updated

Get Daily News on your Browser
Sections