We derive comfort from the current valuation and would strongly recommend adding the stock to the portfolio of investors.
Given the industry leading performance in the past and presence of the right ingredients for growth, we would advise buying into the stock amid the weakness
While the headline valuation looks heady, it has to be seen in the context of the strong earnings growth expected in the coming years
Mindtree shareholders are indeed in a sweet spot as long as the digital-driven strategy bears fruit for the company and attracts the attention of its rivals.
While the muted guidance was disappointing, the management commentary on demand and FY20 growth outlook is encouraging
Safari is the third largest player in the organised luggage market and has close to 10 percent market share.
The long-term thesis is intact and investors should use the subdued sentiment to gradually accumulate the stock for the long-term
Even after rallying post its result, the stock offers upside given its reasonable valuation at 14.9 times FY20 estimated earnings
The company continued to see an improved margin trajectory with operating margin jumping 50 basis points sequentially to 19.3 percent.
We do see scope for re-rating should the bank successfully complete its journey of reaching high teen RoE in the future
Investors may find the current weakness a right opportunity to accumulate the stock
The weakness may be a perfect time to accumulate the stock for the long term
In the days to come, the direction of IL&FS resolution along with the appointment of the new MD will be the key drivers of the stock.
We remain cautious on this space
The bank looks on track to execute its risk adjusted growth strategy
As an early adopter of digital and with the latter contributing close to 50% of revenue, Mindtree is likely to maintain its industry leading growth going forward
We recommend a careful watch on the stock and accumulate it in the impending weak phase
Other than the question mark on IL&FS exposure (which is partially addressed with the provision), rest of the business has performed on expected lines.
The company has aggressive growth ambitions and envisages to grow at 2x the industry rate and double its revenues over the next 2 years.
The conservative approach of the management is likely to pay dividend in the long term
The bank seems well positioned to capture market share
Tune in to find out what went right for ITC this quarter and the cues investors can take going forward.