Hold Mindtree: target of Rs 4167: ICICI Securities

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26 Aug, 2025 12:21

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ICICI Securities research report on Mindtree

Mindtree (MTCL) has reported revenue growth of over 5% QoQ (CC) for the fifth consecutive quarter in Q4FY22. Revenue stood at US$384mn, growing at 5.2% QoQ (CC) and 4.8% QoQ (US$) (Isec: 4.9%, Cons: 4.3%). Margin performance was impressive with EBIT margin at 18.9%, -30bps QoQ (Isec: 18.1%, Cons: 18.8%), above our estimates. FY22 margins are at 18.6%, up 120bps YoY. MTCL added 3,112 employees, up 10% QoQ and 47% YoY in Q4FY22 (vs average addition of 2.7K per quarter in 9MFY22). The company has been adding 1.5K+ freshers every quarter since last 2-3 quarters. It has added a delivery centre in Pune and opened a new development centre in Kolkata. Utilisation improved to 83.1% (vs 81.5% in Q3FY22) despite strong hiring during the quarter. This was due to MTCL’s ability to bill its freshers on a quicker timeframe. LTM attrition increased to 23.8%, +190bps QoQ, in line with industry standards. Management expects this to gradually stabilise over coming quarters. We believe MTCL is handling supply side mechanism most efficiently in our coverage.

Outlook

We value MTCL at 32x on FY24E EPS of Rs130 to arrive at a TP of Rs4,167. Maintain HOLD.

More Info

At 13:40 hrs Mindtree was quoting at Rs 3,818.00, down Rs 142.80, or 3.61 percent.

It has touched an intraday high of Rs 4,080.00 and an intraday low of Rs 3,780.80.

It was trading with volumes of 95,399 shares, compared to its thirty day average of 39,179 shares, an increase of 143.49 percent.

In the previous trading session, the share closed down 3.33 percent or Rs 136.35 at Rs 3,960.80.

The share touched its 52-week high Rs 5,059.15 and 52-week low Rs 1,999.85 on 18 November, 2021 and 19 April, 2021, respectively.

Currently, it is trading 24.53 percent below its 52-week high and 90.91 percent above its 52-week low.

Market capitalisation stands at Rs 62,933.53 crore.

For all recommendations report, click here

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