Two Directors at MindTree Limited sold 862 shares at between 3,508.400INR and 3,531.401INR. The significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over ...
The independent financial analyst theScreener just lowered the general evaluation of MINDTREE (IN), active in the Computer Services industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered defensive. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date December 14, 2021, the closing price was INR 4,625.55 and its target ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
MINDTREE 1QFY22: Stellar revenue in 1QFY22, deal wins imply continuing momentum (MTCL IN, Mkt Cap USD5.5b, CMP INR2495, TP INR2620, 5% Upside, Neutral) 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 ...
MINDTREE: Can growth too surprise? (MTCL IN, Mkt Cap USD2.2b, CMP INR936, TP INR1100, 18% Upside, Upgrade to Buy) Since July'19, post L&T took over control, Mindtree (MTCL) has been taking encouraging steps in its journey toward stability on both client and employee counts. Dec'19 was the first quarter that demonstrated signs of this stability. Strategy change toward higher focus on annuity revenue and tail account rationalization is already reflecting in the revenue and client mix. The...
MINDTREE: Multiple positives except for softness in deal wins (MTCL IN, Mkt Cap USD2b, CMP INR864, TP INR985, 14% Upside, Neutral) However, rich multiples leave no margin of safety Strong growth at top account (+26% YoY) and better-than-expected operational optimization assuage concerns about ownership and management transition. Early signs of success related to strategy refresh (e.g. increasing revenue share from fixed-price contracts) are now visible. As mix incrementally shifts towar...
MINDTREE: Operationally in line; guides for low-teens revenue growth in FY20 (MTCL IN, Mkt Cap USD2.3b, CMP INR972, TP INR1000, 3% Upside, Neutral) Exits the year with strong revenue and sluggish margin momentum: In FY19, MTCL grew its constant currency (CC) revenue by 19.2% YoY, accelerating by over 2x from 9.3% YoY growth in FY18. EBITDA margin expanded 160bp YoY to 15.2% in FY19, driving EBITDA growth of 44% YoY. Adj. net income, thus, grew 55% YoY. MTCL announced a total dividend of I...
MindTree: In the face of hostility; A distraction that the promoters could have done without (MTCL IN, Mkt Cap USD2.2b, CMP INR943, TP INR1000, 6% Upside, Downgrade to Neutral) L&T announced purchase of 20.32% shares of MindTree (MTCL) from the largest shareholder, followed by the intent to buy up to 15% from the open market and making an open offer for up to 31%, taking the total potentially up to 66%. While the acquisition is strategic in nature, L&T does not have any immediate plans t...
Q3FY19 result highlights Inline revenue & margins: Revenues of US$ 251.5m (+2.1% qoq; +17.4% yoy) was inline with our estimates (IDFCe US$251.3m). MTCL posted a CC growth of 2.4% QoQ inline with our estimate of 2.5% QoQ. The volume growth was muted at -1.1% (-1.4% QoQ offshore and -0.1% QoQ onshore) in Q3FY19. EBIT margins came at 13.6% slightly came above our estimates of 13.4%. The margins were driven by operational efficiencies (+48bps qoq). PAT at Rs1.9bn (-7.3% qoq, +35% yoy) – w...
MINDTREE: Signs of de-risking dependency on top client (MTCL IN, Mkt Cap USD1.9b, CMP INR842, TP INR1000, 19% Upside, Buy) 3Q revenue and business momentum: MTCL’s 3QFY19 revenue grew 2.4% QoQ in constant currency (18.6% YoY CC), in line with our estimate of +2.6% QoQ. EBITDA margin expanded 50bp QoQ to 15.9%, marginally higher than our estimate of 15.4%. PAT was down 7.3% QoQ to INR1,912m, as against our estimate of a 28% QoQ decline, primarily due to lower ETR (14% v/s our estimate of 2...
Q2FY19 result highlights Revenue and margin miss: Revenue of US$ 246.4m (+2.0% qoq; +19.5% yoy) was below of our expectation (IDFCe US$250m). Mindtree (MTCL) posted a constant currency (CC) growth of 2.4% QoQ below our estimate of 4.4% QoQ. The volume growth was strong at 6.3% QoQ (7% offshore and 3.9% onshore QoQ) but didn’t translate into revenue growth. EBIT margins increased by 143bps qoq to 13.1% (IDFCe:14.1%). EPS of Rs 12.5 (IDFCe: Rs 12.9), -30.5%/+69% qoq/yoy. Mixed commentary: MT...
MINDTREE: Revenue miss; cautious macro commentary in contrast to current sector mood (MTCL IN, Mkt Cap USD2.2b, CMP INR979, TP INR1125, 15% Upside, Buy) Negative revenue surprise: MTCL's 2QFY19 constant currency (CC) revenue growth of 2.4% QoQ was below our estimate of +5.7% QoQ and significantly below +8.2% QoQ CC in 1QFY19. Our estimate was based on management's guidance of 'slightly lower' growth in 2Q compared to USD revenue growth in 1Q, but project completion in Retail in Europe and...
We attended the analyst meet of Mindtree (MTCL) wherein management reiterated their growth strategy. The strategy centres around building capabilities in digital and accelerating share gains from large deals. This should translate in higher than industry growth with expanding margins. We have liked MTCL strong digital positioning and premium growth. However we believe that valuations of 20.7x FY20E P/E capture lot of the premium execution, thus limiting share price upsides. Retain Neutral. Mark...
MindTree: Driving change to ensure leadership beyond Digital (MTCL IN, Mkt Cap USD2.5b, CMP INR1099, TP INR1260, 15% Upside, Buy) We attended Mindtree's (MTCL) analyst meet, where the company highlighted its roadmap to maintain leadership in Digital over the medium term and also invest in new areas beyond Digital for long-term sustainable growth. Changing technologies are likely to result in a business-model transformation, and MTCL is expected to take a more solutions- and product-centric ...
Q1FY19 result highlights Big revenue beat but margin miss: Revenue of US$241m (+6.8% qoq; +20.7% yoy) was ahead of expectation (IDFCe US$233m). Volumes grew 6.6% qoq. EBIT margins declined by 182bps qoq to 11.6% (IDFCe:12.5%). This included endowment grant of US$1.5mn to Stanford, which impacted EBIT margins by 60bps. Mindtree (MTCL) has taken enabling resolution to invest Rs1.5bn or 10% of profits into CSR and such grants. Even adjusting for this EBIT margins at 12.3% for Q1FY19 were below e...
MindTree: Top accounts continue driving turnaround (MTCL IN, Mkt Cap USD2.5b, CMP INR1063, TP INR1225, 15% Upside, Buy) Near-complete turnaround in four quarters: MTCL's sharp turnaround of business looked complete, with strong revenue momentum driving USD revenue growth of 20.7% YoY compared to +0.6% four quarters back. 1QFY19 revenue of USD242m was ahead of our estimate of USD235m, and grew as much as 8.2% QoQ CC. EBITDA margin contracted 200bp QoQ to 14.1%, slightly below our estimate ...
Q4FY18 result highlights Picture perfect quarter: Revenue of US$226.2m (+5.5% qoq; +15.6% yoy) was ahead of expectation (IDFCe US$222m). Volumes grew 7.8% qoq but realisation declined impacted by higher working days. EBIT margins expanded by 150bps qoq to 13.3% (IDFCe:12.1%). Margin improvement was seen in standalone (90bps) and reduction losses in acquisitions. EPS of Rs 11 (IDFCe: Rs 9.4), +28.%/92% qoq/yoy. FY19 revenue and margins to be better than FY18: Mindtree(MTCL) expects both reven...
MindTree: Revenue beat despite BFSI weakness; Upgrading our estimates on all-round traction (MTCL IN, Mkt Cap USD2.2b, INR866, TP INR1000, 15% Upside, Buy) Strong exit to an overall subdued year In FY18, MTCL's revenue grew by 8.6% YoY to USD847m, EBITDA by 3.1% YoY to INR7.4b and PAT by 29% YoY to INR5,701m. Excluding the one-offs from the reversal of acquisition liabilities, PAT grew 19.6% YoY to INR5,007m. However, the exit to the year was far healthier on the operational front, wit...
Q3FY18 result highlights Beat on revenues and margins: Revenue of US$214.3m (+3.9 qoq; +11.5% yoy) was ahead of expectation (IDFCe US$209m). Volume de-grew 1.9% qoq but blended realization improved of 5.9% qoq. EBIT margins expanded by 385bps qoq to 12% (IDFCe:9.3%) despite FX headwinds. Margin improvement was seen in standalone and losses were lower in acquisitions. EPS of Rs8.6 (IDFCe: Rs6.6), +16%/40% qoq/yoy, was helped by tax reversal of Rs249m. Confidence in revenue guidance should gro...
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