The 30 reports from 12 analysts offering long term price targets for MindTree Ltd. have an average target of 1022.33. The consensus estimate represents a downside of -22.76% from the last price of 1323.50.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-07-20||MindTree Ltd.||Geojit BNP Paribas||1021.00||1102.00||1021.00 (29.63%)||Target met||Hold|
Geojit BNP Paribas
Despite the uncertain macro-economic environment due to COVID-19, we expect, large deal (Realogy), along with cost optimization and strong cash conversion should support company's topline. Therefore, we upgraded our rating to HOLD on the stock with a revised target price of Rs. 1,102 based on 20.5x FY22E adj. EPS. Decent show despite challenging times Company recorded revenue of Rs. 1,909cr (+4.1% YoY), led by Communication, Media and Technology (CMT; contributing 51.0% to total revenue, +34.7% YoY to Rs. 974cr),...
|2020-07-17||MindTree Ltd.||Arihant Capital||1022.00||1062.00||1022.00 (29.50%)||Target met||Hold|
Mindtree reported good set of numbers in Q1FY21. Revenue stood slightly below our estimates while EBITDA and PAT are above our estimates. Company anticipates a healthy order book of USD 391M despite the global headwinds due to Covid-19 pandemic. Consolidated revenue for Q1FY21 stood at Rs 19,088 mn, slightly below our estimate of Rs 20,827 mn registering -6.9% QoQ/+4.1% YoY growth. Reported EBITDA grew +74.9% YoY/flat -0.5% QoQ to Rs 3,220 mn, above our estimate of Rs 2,916 mn, while EBITDA margin expanded 683bps...
|2020-07-16||MindTree Ltd.||Chola Wealth Direct||1022.00||904.00||1022.00 (29.50%)||31.70||Sell|
Chola Wealth Direct
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...
|2020-07-15||MindTree Ltd.||HDFC Securities||975.50||1090.00||975.50 (35.67%)||Target met||Accumulate|
Wipro: We maintain ADD on Wipro, based on in-line revenue performance and positive surprise on margins. The decline in revenue was broad-based with the highest impact witnessed in the communication, consumer and manufacturing verticals. The company has restrained from giving guidance based on an uncertain environment. Mindtree: We maintain ADD on Mindtree, following a sub-par 1Q revenue performance, offset by its strong and sustainable operating trajectory. Significant growth divergence has been witnessed in the portfolio with T1 account (30% of revenue) posting double-digit QoQ, travel & hospitality (8% of 1Q revenue) downsizing to half sequentially and the residual business (~62% of revenue) posting -4.6% QoQ.
|2020-07-15||MindTree Ltd.||Nirmal Bang Institutional||975.50||975.50 (35.67%)||Not Rated|
Nirmal Bang Institutional
Poor internals; Margin improvement the only redeeming factor Mindtree (MTCL) 1QFY21 underperformed our estimates on revenue but positively surprised on margins. USD revenue decline of 9.1% QoQ was weaker than our estimate and was almost entirely driven by realization decline. Also, internals of revenue were poor. The decline in realization was due to a combination of temporary price concessions given to some clients and impact of lack of billing in some projects which are undergoing transition. These contracts will start billing in the quarters ahead. While MTCL was willing to indicate that 2Q was going to be a bit better than 1Q, there was no quantification and neither was a medium-term trajectory...
|2020-07-15||MindTree Ltd.||Prabhudas Lilladhar||1009.20||888.00||1009.20 (31.14%)||32.91||Sell|
We maintain our Reduce rating as we consider stock valuations expensive against the downturn of discretionary spends & top client concentration (30% of revenues). Our EPS estimates are upgraded on account on better margin performance, change in deprecation policy & higher other income. We value MTCL at 14X Sep-22 EPS of Rs. 63.5 to arrive at changed TP of Rs.888. MTCL is trading at 16X/15X FY22/23E earnings of Rs.61/66 respectively. Mindtree reported revenue de-growth of 9.1% in QoQ vs our estimates of 7.1% CC decline. Volumes were up 4% YoY. Pricing was down 5.2% YoY, mainly...
|2020-07-14||MindTree Ltd.||Motilal Oswal||975.50||1160.00||975.50 (35.67%)||Target met||Buy|
Mindtree reported revenue (USD)/Adj. EBIT/PAT growth of -4%/75%/130% The company reported yet another quarter of strong performance from the top account (Microsoft, +10% QoQ and +44% YoY). The share of revenue from fixed-price projects saw a material increase (~830bp QoQ to ~67% of revenue), largely reflecting the strategic focus on Tight control on cost more than offset the margin impact from a drop in the revenue run-rate. Increasing client concentration and potential insolvencies in some airlines / hospitality companies on account of the COVID-19 disruption are key risks to Additionally, it now has decent exposure to annuity-/project-based work in the Mindtree reported revenue (USD)/Adj. EBIT/PAT growth of -4%/75%/130% YoY. BFSI and Retail The share of revenue from fixed-price projects saw a material increase (~830bp QoQ to ~67% of revenue), largely reflecting the strategic focus on chasing long- Cash conversion was healthy during the quarter.
|2020-06-14||MindTree Ltd.||Motilal Oswal||923.00||1080.00||923.00 (43.39%)||Target met||Buy|
Mindtree has informed the stock exchanges that it expects high single-digit revenue decline (USD, QoQ) in 1QFY21, driven by near-term headwinds in the Travel and Hospitality vertical (TTH, ~16% of sales). While the update is procedural best practice, we have factored in sequential decline of similar Mindtree has further highlighted that it is currently witnessing high demand in Communications, Media and Technology (CMT) and CPG verticals. The company expects sequential growth in 2QFY21 and top line recovery in 2HFY21. It foresees demand for Digital and Transformational services as clients invest in data, cloud- enabled solutions, customer centric and end-user Despite near-term growth challenges, Mindtree expects margins to remain stable in 1QFY21 at 4QFY20 levels. salary hike deferral, optimization in sub-contractor and discretionary expenses) seem to have driven this margin stability notwithstanding the expected revenue decline. The stock is currently trading at 18x on depressed FY21E EPS.
|2020-04-27||MindTree Ltd.||Nirmal Bang Institutional||881.60||532.00||881.60 (50.12%)||59.80||Sell|
Nirmal Bang Institutional
Mindtree's (MTCL) 4QFY20 USD revenue growth at 1.2% QoQ (1.9% in constant currency CC) was 3% higher than our estimate. We were estimating a decline of 1.9% (1.6% decline in CC). We were cautious due to its large exposure of ~17% to the travel, transportation and hospitality sector, which has been hit very badly in the current Covid-19 crisis. Unlike many peers which have reported results for the March 2020 quarter, MTCL has indicated that it did not experience any impact of Covid-19 in the quarter. That is likely because it was possibly ahead of the curve in implementing WFH (work from home) in the first week of March itself, which was significantly ahead of its peers and the negative impact in 4Q for most players came...
|2020-04-27||MindTree Ltd.||BOB Capital Markets Ltd.||881.60||810.00||881.60 (50.12%)||38.80||Sell|
|2020-04-27||MindTree Ltd.||ICICI Securities Limited||867.30||885.00||867.30 (52.60%)||Target met||Hold|
ICICI Securities Limited
The company did not witness the impact of Covid-19 in Q4FY20. We believe this is the primary reason for its stellar performance in the quarter. MindTree has improved its margins significantly in the quarter and brought it well...
|2020-04-26||MindTree Ltd.||Prabhudas Lilladhar||879.65||680.00||879.65 (50.46%)||48.62||Sell|
Mindtree reported revenue growth of 1.9% in c/c and 1.2% in reported terms, in line with our expectations. Growth was driven by the top account which grew 8.6% sequentially. Ex-top account revenues would have declined 1.1% QoQ. Its top client added US$5.5 mn to incremental revenues offsetting US$2.3 mn decline in the rest of the firm. EBIT margin was in line with our estimates of 12.5%. Active clients have shown a decline to 307 from 320 in Q3FY20 & 343 in Q2FY20, this highlights rationalization of tail accounts. We give credit to the new management on margin expansion, but we find...
|2020-04-25||MindTree Ltd.||BOB Capital Markets Ltd.||879.65||810.00||879.65 (50.46%)||38.80||Sell|
|2020-03-18||MindTree Ltd.||ICICI Securities Limited||720.50||720.50 (83.69%)||Hold|
ICICI Securities Limited
The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...
|2020-02-13||MindTree Ltd.||Motilal Oswal||959.90||1100.00||959.90 (37.88%)||Target met||Buy|
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).
|2020-01-20||MindTree Ltd.||Geojit BNP Paribas||892.75||817.00||892.75 (48.25%)||Target met||Sell|
Geojit BNP Paribas
We reiterate our REDUCE rating on the stock with a revised target price of Rs. 817 based on 14x FY22E adj. EPS, given the sluggish growth in contracts signed and tough competition in the industry. Strong Hi-Tech segment leads the way Mindtree's revenue were up 10.0% YoY to Rs. 1,965cr primarily driven by the 15.7% YoY growth in the High Technology and Media segment (41.5% of total revenue), Also, Travel and Hospitality segment (16.6% of total revenue) and BFSI segment (21.3% of total revenue) grew 9.9% and 8.2% YoY, respectively. Retail, CPG and Manufacturing...
|2020-01-15||MindTree Ltd.||Chola Wealth Direct||887.85||852.00||887.85 (49.07%)||Target met||Neutral|
Chola Wealth Direct
Sector: IT /Mid-Cap | Earnings Update 3QFY20 Background: Mindtree is a mid-cap IT company with revenues of INR 70.2bn (FY19). In 3QFY20: Revenue share by Geography mix: North America (74.6%), Europe (17.0%), India (4.0%) and ROW (4.4%). Revenue share by service mix: ADM & product engineering (12.7%), IMS (24.9%), Testing (17.7%), Packaging solutions (6.5%) and Digital (38.2%). Revenue share by Vertical mix: BFSI (21.3%), Retail CPG & Manufacturing (20.6%), Travel & Hospitality (16.6%), Hi-tech Media & Entertainment (41.5%).The company has 21,561 employees spread across 27 offices to cater to 320 active clients, which includes over 40 Fortune 500 companies. Top client revenue...
|2020-01-15||MindTree Ltd.||Nirmal Bang Institutional||887.85||887.85 (49.07%)||Results Update|
Nirmal Bang Institutional
3Q Weak; Weak renewals. Pivoting to a sustainable model Mindtree (MTCL) 3QFY20 underperformed on revenue growth but beat our margin estimates. 1% constant currency (CC) growth was materially below our estimate of 3.1%. The 1.5% USD growth QoQ was driven by 3.1% decline in blended volume and a ~4.6% growth in blended realization. The decline in volume has been because of higher furloughs and the increase in realization due to shift in some projects from transition to steady state (where we guess billing of work started). MTCL indicated that contractual pricing was stable. This 3Q volumerealisation mix reversed the situation of 2Q (see 2QFY20). The new management articulated a strategy of moving away from project related work towards more annuity-based work, which...
|2020-01-15||MindTree Ltd.||ICICI Securities Limited||897.60||945.00||897.60 (47.45%)||Target met||Hold|
ICICI Securities Limited
The company reported 1.5% QoQ growth in dollar revenues driven by its top client. However, revenues were below our estimates while growth in 610 clients continued to decline in the quarter. The key positive in the quarter was margin expansion of 262 bps mainly led by operational efficiency and currency benefit. Key concern in the quarter was low digital growth at 13.5% YoY, dip in TCV (down 19.1% YoY & 32.6% QoQ) leading to book to bill ratio...
|2020-01-14||MindTree Ltd.||HDFC Securities||887.85||830.00||887.85 (49.07%)||Target met||Neutral|
While Mindtree has navigated the leadership transition, broad-based' and sustainable growth profile may take slightly longer as the company undergoes the shift from project-heavy (front-end digital) into longer duration annuity deals. Near term performance will exhibit modest revenue growth (vs. peers) and improving operating profile. We expect USD rev/EPS at 10/13% CAGR over FY19-22E factoring USD rev growth of 8.9/10.3/11.5% and EBIT% of 10.0/12.1/13.7% for FY20/21/22E. We maintain NEUTRAL on Mindtree following an in-line rev/better operating performance. Growth was top account heavy and operational improvement is expected to continue. Our TP of Rs 830, implies 14x Dec-21E EPS (~4% increase in EPS est).