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...

Management is confident of sustaining EBITDA margins above 20% in FY22 along with industry leading revenue growth. Demonstrating strength in demand, MTCL blazed past all expectations with exceptionally strong beat in revenue growth, +7.7% QoQ $ (PLe: 5.9%, Cons:4.8%) driven by broad based demand momentum in RCM (+7.7% QoQ...

We recommend a BUY on the stock and assign 27x P/E multiple to its FY23E earnings of Rs 105.1/share to arrive at a TP of Rs 2,800/share, implying an upside potential of 12% from CMP.

MTCL delivered another strong quarter, with USD CC revenue growth of 7.6% QoQ, above our estimate of 6.3%, led by broad based growth across client buckets. Deal TCV was at a record high of USD504m, with a growing proportion of annuity deals, which offers better revenue visibility, but having larger than usual renewal share. EBITDA margin fell 160bp QoQ, led by higher employee additions, increased subcontracting expenses (170bp), and greater visa costs (40bp), but partially offset by cross currency gains and higher revenue (50bp). EBIT...

Mindtree (MTCL) reported a strong Q1FY22 performance with revenue growth of 7.7% QoQ USD, ahead of our (5.4%) and street estimates

In Q4, Mindtree registered US $ revenue growth of 5.2%. Company has posted highest ever quarterly revenue of US $288.2 million for the quarter. After providing the wage hikes across the organization effective Jan 1st, Mindtree's EBITDA for the quarter was 21.9%. For the full year, revenue is at US $1,076.5...

The company highlighted long term growth through client mining, geographic expansion, whitespace opportunities and growth with hyperscalers. In terms of geography, Mindtree plans to increase investment in Europe with focus on UK, Nordics & DACH regions. Apart from Europe expansion, the company plans to expand in APAC, Middle East (with special focus on travel & BFSI clients) & Japan (with the help of parent). In addition, in terms of whitespace opportunity, Mindtree plans to expand in healthcare segment (with focus on digital transformation on provider & med tech) and...

We recommend a BUY and assign 24x P/E multiple to its FY23E Earnings of Rs. 103.8/share which gives a TP of Rs. 2,475/share, implying an upside of 12%.

deal pipeline, recovery in travel and sharp focus on 4x4x4 strategy which is No impact on client deliverables due to second wave of COVID in India confidence on delivering industry-leading growth and 20%+ EBITDA margin yielding results 1) improved ability to expand wallet share 2) strengthened...