MindTree Ltd. share price target

We attended MTCL's Analyst Day, where the management reiterated its 4x4x4 strategy and investments that the company is incurring to boost long-term growth. Here are the key highlights from the meet: The management reiterated its 4x4x4 strategy, with a focus on four industry groups, four service lines, and four geographies. Continuing with its four core industry groups, it will now segregate Healthcare as a separate vertical, given...

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...

Revenue increased 2.9% YoY to Rs. 2,109cr in Q4FY21 (+3.5% YoY in USD terms). Retail, CPG, Manufacturing, Communications, Media and Technology segments registered double digit YoY growth, while...

We recommend BUY and assign 22x P/E multiple to its FY23E earnings of Rs 103.6 per share to arrive at a TP of Rs 2,275/share, implying an upside potential of 10%.

Strong 4QFY21, tailwind from the Travel vertical to boost growth in FY22E Current valuations fairly pricing in growth Mindtree (MTCL) delivered another strong quarter, with USD revenue growth of 5.1% QoQ, above our estimate of 4.3%, driven by robust growth outside of the top 10 accounts (+8.6% QoQ USD) and end of discounts in the Travel and Hospitality vertical (+17% QoQ USD). Deal TCV rose 20% QoQ to...

Healthy order book, improving growth across verticals The company's order-book for FY21 has increased 12% YoY. In addition, Mindtree is seeing healthy deal wins in BFSI (which is expected to ramp up in FY22E), green shoots in travel and ramp up deals transitioned in the previous quarters, which bodes well for revenue growth. Further, considering the company's ability to cross sell, up sell, inorganic expansion, organic expansion via P&L;, expansion in Europe and traction in cloud & data prompts it to believe it will be able to clock industry leading double digit...

Mindtree (MTCL) reported a strong Q4FY21 performance with dollar revenue growth of 5.2% QoQ, ahead of estimates.

Additionally, MTCL has filled all the recent gaps in leadership (post major attrition since the management change), largely from Tier 1 IT. This has made the company ready to compete for larger deals in the market. Successfully transitioning from project- to annuity-based approach Mr Chatterjee has changed the company's focus from more of discretionary work to a healthy mix of discretionary and lights on services. This further translates to extended deal tenures and hence offers higher visibility in terms of revenues. MTCL's four key service lines are also structured in a way that targets multiple...

Mindtree continued to hire fresh minds with net addition of 386 people while attrition dropped to 12.5% in Q3FY21 vs. 17.2% in Q3FY20. Work from home situation increased the utilization rate drastically to 83.1%...