MindTree Ltd.

NSE: MINDTREE | BSE: 532819 | ISIN: INE018I01017 | Industry: IT Consulting & Software
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MindTree Ltd.
MindTree Ltd.
13 Feb 2020
Motilal Oswal
Strategy change in terms of higher focus on managed services/annuity revenue should translate into longer-term engagements and better quality earnings. Among the mid-cap IT companies, MTCL was an early mover in terms of the strategic focus on digital capabilities, which also led to a high share of digital in the revenue mix (50%+). This led to high volatility in growth and margin trajectory, Strategic change in terms of higher emphasis on managed services should lead to longer-term engagements, lower volatility and higher quality earnings. These steps translated into a high share of digital revenue (50%+) The companys strong reference ability in SAP HANA/salesforce ecosystems and niche verticals like Hi-Tech, CPG, Travel & Hospitality provide it an edge over competitors. The volatile nature of spend in this account also led to relatively high volatility in MTCLs revenue growth and margin trajectory (v/s peers like LTI).
BOB Capital Markets Ltd. downgraded MindTree Ltd. to Sell with a price target of 3837.0 on 24 Apr, 2025.
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