Mindtree
Mindtree share price rose three percent but erased the gains quickly in early trade on April 19 a day after the company came out with its March quarter earnings.
It touched an intraday high of Rs 4,080 and an intraday low of Rs 3,931.
In the previous trading session, the share closed down 3.33 percent or Rs 136.35 at Rs 3,960.80.
Mindtree on April 18 reported a consolidated net profit of Rs 473.1 crore for the quarter ended March, an on-year growth of 49 percent. On a sequential basis, the growth is eight percent.
The Larsen & Toubro group company had reported a consolidated profit after tax (PAT) of Rs 317.3 crore during the corresponding period a year ago. Its PAT during the December quarter stood at Rs 437.5 crore.
Revenues for the quarter in review came in at Rs 2,897.4 crore, a growth of 37 percent over the year ago period. On a quarterly basis, growth was five percent.
The company had reported consolidated revenues of Rs 2,109.3 crore during the corresponding quarter last year. Revenues during October-December stood at Rs 2,750 crore.
Catch all the market action on our live blog
Here is what brokerages have to say about the stock and company after earnings:
Goldman Sachs
The research firm Goldman Sachs has kept a neutral rating on the stock with a target at Rs 3,744 per share.
The results were in line with strong demand outlook intact, but the broking firm lowered EPS (earnings per share) estimates by 2-3% over FY23-26.
It forecast 23/13% dollar revenue growth for FY23E/24 and margin at 20%.
Nomura
The brokerage house has maintained a neutral rating on the stock with a target at Rs 4,320.
Robust growth continued and headcount signals that it will go on.
Client metrics are headed in the right direction, but deal wins continue to be sluggish, while growth is coming from smaller projects.
Morgan Stanley
The research house has kept an equal-weight rating and cut the target price from Rs 5,100 to 4,450 per share.
The results were in line with constructive management commentary.
Despite volatile macro, street EPS estimates appear achievable.
Prabhudas Lilladher
“Our EPS estimates remain largely unchanged. Our DCF based target price of Rs 4,778 (earlier Rs 5157) with implied earnings target multiple of 35x on FY24 EPS (earlier 38x) factors increase in risk free rate to 7.2% (earlier 6.8%) and moderation in terminal growth rate.
“Mindtree is currently trading at 34x/29x on earnings of Rs 116/135 for FY23/24 respectively with revenue/EPS compound annual growth of 17/16% for FY22-24E. Maintain buy.”
Motilal Oswal
“The management’s increased focus on annuity revenue and strategic accounts is reflected in its revenue and client mix.
“A strong outlook on strategic accounts, decent deal signings, and the ability to sustain improved margin are key positives.
“The stock is currently trading at 28x FY24E EPS. As the key positives are already captured, we see limited upside hereafter. Our target price of Rs 4,230 per share implies 30x FY24E EPS. We maintain our neutral rating.”
YES Securities
“We maintain add rating on the stock with a revised target price of Rs 4507, valuing the stock at 34x on FY24E EPS.
“We have cut down our target PE multiple from 41x to 34x to account for higher cost of capital going ahead. The stock trades at PER of 29.9x on FY24E EPS.”
At 09:18 hrs Mindtree was quoting at Rs 3,945.15, down Rs 15.65 or 0.40 percent on the BSE.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes
