Insights

MindTree Ltd.

October 14, 2015 . Equities Desk

Incorporated in 1999, MindTree Ltd. operates in two segments, viz; production engineering (PE) services and IT services. PE services include research and development (R&D) services and software product engineering (SPE). SPE provides full life cycle product engineering, professional services and sustained engineering services. IT Services offer consulting and implementation and post production support for customers in manufacturing, financial services, travel and leisure and other industries.

Valuation and view

Mindtree plans to remain a single segment specialist player and achieve strong client recall in the digital vertical. The company means to continue focus on BFSI, Travel and Transport, Hitech and Retail, CPG& Manufacturing verticals. Albeit, we expect strong revenue growth, scope for improvement in utilisation to act as tailwinds, were have factored in headwinds to margins in FY16 owing to appreciating rupee. We expect the top-line and bottom-line to grow at a CAGR of 17% and 14% respectively by FY17E.

At the current market price (CMP) of Rs.1,529, the stock trades at P/E multiple of 21.5x FY16E and 18.2x FY17E. We recommend ‘BUY’ with a target price of Rs. 1,680, assigning a forward P/E multiple of 20x, which implies a potential upside of ~10% to the CMP from 12 months perspective.

Research Report MindTree Ltd

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8 thoughts on “MindTree Ltd.

    1. Hi Rajinder,

      Fundamental recommendations are based on the analysis of the company’s balance sheet, profit & loss account and other financial aspects of the company. In fundamental analysis, the investment decision is based on the company’s performance, position in the industry, management governance etc

      Stoploss is provided generally on short term and medium term technical analysis calls.

      Mindtree Ltd is our fundamental recommendation and hence no stop loss is given. You have to decide the max pain you can endure in such cases and exit if the price falls below your threshold pain level.

      Thanks
      K.Karthick

  1. Earlier you gives technical calls also but now a days u r giving fundamentals calls only,
    If possible please give technical calls also…
    And update ur veiw on nifty atleast monthly

    1. Hi Rajinder,

      Now a days we are sharing our Technical calls and Nifty/Sensex view in our Morninger email and Monthly report. In our blog we are updating our Fundamental calls only. If you are a customer of FundsIndia, please let us know if you are not receiving our technical calls via email.

      Thanks
      K.Karthick

    1. Hi Rajinder,

      Fundamental recommendations are based on the analysis of the company’s balance sheet, profit & loss account and other financial aspects of the company. In fundamental analysis, the investment decision is based on the company’s performance, position in the industry, management governance etc

      Stoploss is provided generally on short term and medium term technical analysis calls.

      Mindtree Ltd is our fundamental recommendation and hence no stop loss is given. You have to decide the max pain you can endure in such cases and exit if the price falls below your threshold pain level.

      Thanks
      K.Karthick

  2. Earlier you gives technical calls also but now a days u r giving fundamentals calls only,
    If possible please give technical calls also…
    And update ur veiw on nifty atleast monthly

    1. Hi Rajinder,

      Now a days we are sharing our Technical calls and Nifty/Sensex view in our Morninger email and Monthly report. In our blog we are updating our Fundamental calls only. If you are a customer of FundsIndia, please let us know if you are not receiving our technical calls via email.

      Thanks
      K.Karthick

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