Shares of IT company Mindtree rose more than 12% today. Shares rose as the market opened. At 11.38 in the morning, Mindtree shares were trading up 12.24% at Rs 4891. A day earlier on October 13, the company had released its results for the September quarter. Mindtree’s results were better than expected, whose effect was clearly visible on the company’s shares.
The company’s profit growth was more than 16%. The company’s doller revenue increased by 12.75%. On a quarter-on-quarter basis, the company’s profit in the second quarter stood at Rs 399 crore, up 16.2 per cent. At the same time, it was estimated at Rs 358 crore in CNBC-TV18 poll. Whereas in the first quarter of the same financial year, the company’s profit stood at Rs 343.4 crore.
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Analysts raised the target
S has given Equal-weight Rating on MINDTREE and has set target of share as higher from Rs.4500 to Rs.4250. He says that the company has got better results than expected. The company has done good commentary regarding revenue. However, margins are likely to be impacted in the second half.
UBS has given a sell rating on Mindtree with a target of Rs 3550 for the stock. He says the company’s top clients and sluggish TCV growth have raised concerns.
GS has given sell rating on MINDTREE and has a target of Rs 3784 for the stock. The company has shown good results but there are concerns about valuations. They have raised its EPS estimate for FY22-26.
MACQUARIE has rated UNDERPERFORM on MINDTREE and has a target of Rs 3,900 for the share. He says earnings in Q2 were better than expected but valuations remain a concern.
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