MindTree Ltd. share price target

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...

MTCL reported a revenue of USD384m (+5.2% QoQ CC) in 4QFY22. Reported revenue grew 4.8% (inline), driven by broad-based growth across verticals and regions. Deal TCV rose 9% QoQ to USD390m in 4QFY22. The management reiterated that the demand environment continues to remain strong, and expects industry-leading growth in FY23. EBITDA margin fell 50bp QoQ (inline) in 4QFY22 on higher utilization and...

Q4 revenue growth at 4.8% QoQ USD was largely in line with our estimate, driven by travel and BFSI verticals; manufacturing and retail slowed

We attended MTCL's annual investor meet, where the management reiterated its strong demand outlook and detailed the six strategic levers for FY23. It sees scope for continued performance in their 4x4x4 strategy and investments required to boost long-term...

We recommend a BUY on the stock and assign 38x P/E multiple to its FY24E earnings of Rs 140.2/share to arrive at a TP of Rs 5,310/share, implying an upside potential of 39% from the CMP.

all companies in NIFTY IT Index, several mid-cap, small cap IT firms and new age internet players. Management commentary across companies indicate that strong demand environment is expected to continue over medium term and revenue growth is no longer contingent on winning large deals. Pricing environment has also improved. Additionally, companies are doing aggressive fresher hiring resulting in pyramid balancing which will provide considerable margin tailwinds in FY23....

Company's healthy order book and robust business model should continue to drive growth. Recent hiring spree and other costs however may marginally impact EBITDA margins in the near-term. Also, valuation remains high and therefore we maintain our HOLD rating on...

We recommend a BUY on the stock and assign 40x P/E multiple to its FY24E earnings of Rs 131.5/share to arrive at a, implying an upside potential of 12% from CMP.

despite weak seasonality. It won 10 cloud deals this quarter on back of expanded partnership with one of the hyperscalars. Demand continues to be strong with increasing number of deals coming with large tail of growth. MTCL reported strong beat in EBIT margin, 19.2%, +100bps QoQ, (Ple: 18%, Cons: 18.3%). Unlike peers, MTCL's sub-con costs as % of revenue trended hiring since last few quarters is also aiding margin through pyramid We believe attrition may peak out next quarter and stabilize thereafter. increase in margin estimates. We were already ahead by ~12% compared to...