MindTree Ltd. share price target

Mindtree (MTCL) reported yet another quarter of strong performance.

Mindtree (MTCL) has shown a stellar performance in Q2FY23, grew by 5.2% QoQ in CC terms, marking 8th consecutive quarter of 5%+ growth and beats our estimate.

We recommend a BUY rating on the stock and assign a 28x P/E multiple to its FY24E earnings of Rs 133.9/share to arrive at a TP of Rs 3,720/share, implying an upside potential of 12% from the CMP.

Given that the current trend is sideways to bullish, we advise sticking with the trend for
the duration of its existence and add the position on long side on breakout above resistance zone.

We recommend a BUY rating on the stock and assign a 24x P/E multiple to its FY24E earnings of Rs 133.9/share to arrive at a TP of Rs 3,280/share, implying an upside potential of 13% from the CMP.

MTCL reported strong deal TCV of US$390mn (up 9% YoY and 4% QoQ), taking FY22 deal TCV to US$1.6bn, up 16.7% YoY. TTM book-to-bill ratio stands at 1.14x. MTCL is positioning itself as a comprehensive digital transformation partner with a strong focus on expanding in existing client base.

We recommend a BUY on the stock and assign 35x P/E multiple to its FY24E earnings of Rs 135.8/share to arrive at a TP of Rs 4,830/share, implying an upside potential of 22% from CMP.

Background: Mindtree is a global technology consulting and services company, helping enterprises marry scale with agility to achieve competitive advantage. Born digital, in 1999 and now a Larsen & Toubro Group Company, Mindtree applies its deep domain knowledge to 290+ enterprise client engagements to break down silos, make sense of digital complexity and bring new initiatives to market faster. We enable IT to move at the speed of business, leveraging emerging technologies and the efficiencies of Continuous Delivery to spur business innovation. Operating in more than 15 countries across the world, we're consistently regarded as one of...

TCV of $390 mn, 9% YoY, 4% QoQ in Q4 and $1.6bn, 16.7% YoY in FY23 plus net headcount addition of 47% YoY indicate strong demand momentum. MTCL reported strong revenue growth of 5.2% QoQ CC in-line with our and above cons estimates, led by broad-based growth across most verticals. The company delivered industry leading organic growth of 31% YoY USD in FY22 and is well positioned to lead on growth front in FY23 led by 1) strong TTM TCV of $1.6 Bn, 16.7% YoY, 2) strong client mining capabilities (doubled...