Shares of Mindtree fell over 4 per cent today after the IT firm announced its Q1 earnings on Wednesday. The large cap stock opened 2.37 per cent higher at Rs 2,968 against the previous close of Rs 2,899.35 on BSE. However, Mindtree shares slipped 4.09 per cent to Rs 2,780.65 in early trade.
The stock has fallen after two days of gain. Mindtree stock is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The stock has gained 4.36 per cent in one year and fallen 41 per cent in 2022. Total 0.51 lakh shares of the firm changed hands amounting to a turnover of Rs 14.56 crore on BSE.
Market cap of the firm fell to Rs 46.464 crore on BSE. The stock hit a 52-week high of Rs 5,059.15 on November 11, 2021 and a 52-week low of Rs 2,564.95 on July 14, 2021.
Mindtree Q1 results: Net profit rises 37% to Rs 471 cr; revenue up 36%
The firm reported a 37.3 per cent year-on-year (YoY) rise in consolidated net profit at Rs 471 crore for the quarter ended 30 June, 2022 against a net profit of Rs 343 crore in the corresponding quarter of the previous fiscal.
Sequentially, Mindtree’s profit dropped marginally in Q1FY23 from Rs 473.1 crore in March quarter (Q4FY22).
Revenue from operations also rose 36.2 per cent to Rs 3,121.1 crore in the June quarter against Rs 2,291.7 crore in the year-ago period. In constant currency terms, Mindtree’s revenue rose 28.6 per cent (y-o-y) and 4 per cent sequentially at $399.3 million, while its EBITDA margins stood at 21.1 per cent.
The company logged its highest-ever order book at $570 million.
YES Securities has given an add call to the stock with a target price of Rs 3,432, a 18.3 per cent upside to the current market price of Rs 2,901 on BSE.
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“We maintain ADD Rating on the stock with revised target price of Rs 3,432, valuing the stock at 27x on FY24E EPS. We have cut down our target PE multiple from 34x to 27x to account higher cost of capital(WACC) in this environment of high macroeconomic uncertainty. The stock trades at PER of 22.8 times on FY24E EPS,” said the brokerage.
ICICI Securities has assigned a hold call with a target price of Rs 2,899.
“We are impressed with Mindtree’s consistency and disciplined execution on profitability. We continue to value the stock at 23x FY24E EPS of Rs 126 to arrive at a target price of Rs 2,969. Maintain HOLD. Rupee weakness is an upside risk to EPS while continued macro-weakness┬а poses downside risk┬а on valuations/revenue momentum,” the brokerage said.
Mindtree is an international information technology consulting and implementation company that delivers business solutions through global software development. The company operates through four business segments: Retail, consumer packaged goods (CPG) and manufacturing (RCM), banking, financial services and insurance (BFSI), communications, media and technology (CMT), and travel and hospitality (TH).
