Mindtree Q3 review: brokerages upgrade stock after strong Q3; Mgt upbeat on growth, margin outlook
L&T group Mindtree firm gained over 5% in early trade (stock cooled off in mid-afternoon) on better than expected results, strong deal wins, and upbeat outlook by the management. Brokerages hiked earnings estimate and target price. Mindtree reported a beat on revenue and profitability, EBIT margin expanded and deal wins were strong at USD 312 mn, crossing the USD 1 billion mark on a Year to date basis. Revenue grew at 4.6% QOQ in Constant currency terms led by broad-based revenue growth of 5% across verticals and service lines. Profits grew 29% QOQ to Rs 327crore. Pandemic hit travel and transport segment reported strong growth. At the analyst conference call, Management stated that growth momentum is likely to continue in the coming quarters. EBITDA margin can be sustained above 20% despite wage hikes/promotions given margin levers. Debashis Chatterjee, CEO & MD, Mindtree said, “We are witnessing strong business momentum across all verticals with significant demand for cloud, data, and analytics capabilities. Macquarie raised earnings estimate by 8-12% for FY21-23 and stated margin improvement is the key story. Macquarie maintains a neutral rating with a target price of Rs 1770 per share. Goldman Sachs has a buy rating with a target price of Rs 1998 per share. Edelweiss hiked both earnings estimate on a strong outlook and has the highest target price of Rs 2821 per share. Let’s listen to Poonam Saney to catch more on Mindtree Q3 performance Subscribe To ET Now For Latest Updates On Stocks, Business, Trading | ► https://goo.gl/SEjvK3 Subscribe Now To Our Network Channels :- Times Now : http://goo.gl/U9ibPb The NewsHour Debate : http://goo.gl/LfNgFF To Stay Updated Download the Times Now App :- Android Google Play : https://goo.gl/zJhWjC Apple App Store : https://goo.gl/d7QBQZ Social Media Links :- Twitter - http://goo.gl/hA0vDt Facebook - http://goo.gl/5Lr4mC G+ - http://goo.gl/hYxrmj Website - www.etnownews.com
