A sturdy execution was masked by a unstable macro atmosphere, mentioned Morgan Stanley, which has an equal-weight ranking on the inventory.
Higher than anticipated outcomes, robust H1 outlook and reiteration of 20 per cent-plus Ebitda margins had been key positives, mentioned the international brokerage, including that the unstable macro atmosphere is creating uncertainty about demand prospects. The brokerage has a goal of Rs 4,450 on the scrip.
UBS has maintained a ‘promote’ even because it felt Mindtree gave a beat on income, margin and powerful TCV wins, with a goal of Rs 2,700.
On Thursday, the scrip fell 3.29 per cent to Rs 2,804.05 on BSE. The scrip has fallen 42 per cent year-to-date.
The IT main reported a 37.3 per cent year-on-year (YoY) rise in revenue after tax (PAT) at Rs 471.60 crore in contrast with Rs 343.40 crore in the identical quarter final yr. Income for the quarter rose 36.2 per cent YoY to Rs 3,121.10 crore in contrast with Rs 2,291.70 crore within the corresponding quarter final yr. In greenback phrases, income got here in at $399.3 million, up 4 per cent sequentially and 28.6 per cent YoY. Income was up 5.5 per cent sequentially in fixed foreign money phrases.
Ebit margin for the quarter got here in at 19.2 per cent, in contrast with 18.9 per cent within the March quarter and 17.7 per cent within the June quarter of final yr.
YES Securities, which has a goal of Rs 3,432 on the inventory, mentioned enhancing using pyramid, optimistic working leverage and effectivity measures ought to assist the IT main broadly preserve a 20 per cent plus Ebitda margin going forward,
“Attrition stays excessive however is predicted to average over the following few months. Shopper mining technique of upselling and cross-selling amongst high shoppers might serve it effectively,” it mentioned whereas valuing the inventory at 27 instances on FY24 EPS.
famous that administration sees no change in general shopper conduct though it had a few client-specific points within the CPG vertical which have impacted efficiency by means of each 4QFY22 and 1QFY23.
“The corporate stays assured of sustaining ‘about 20 per cent’ Ebitda margins and repeated dedication so as to add 30 per cent extra freshers in FY23. The outcomes barely drove FY23E EPS, although we have now average progress assumptions for FY24 and FY25 to think about growing macro issues We additionally alter our goal a number of for the ‘merged LTI-Mindtree’ entity to 25 instances from 27 instances earlier in keeping with historic 10 per cent common low cost to
,” it mentioned whereas suggesting a goal of Rs 3,290 on the inventory.
ICICIdirect mentioned it’s impressed with Mindtree’s consistency and disciplined execution on profitability. It values the inventory at 23 instances FY24E EPS of Rs 126 to reach at a goal value of Rs 2,969.
Kotak Institutional Equities mentioned deal wins remained stable in Q1 with a document TCV of $570 million. The corporate is assured of sustaining income progress momentum in Q2 and is cautiously optimistic for H2 amid macro uncertainties and problem in predicting shoppers’ spending behaviour, Kotak famous.
“We tweaked EPS estimates, factoring in Q1 efficiency. We preserve Purchase with a TP of Rs 3,400 at 25 instances June 24E EPS, contemplating robust execution, margin protection and advantages from merger synergies with LTI within the medium time period,” Kotak mentioned.
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