Mindtree Share Price Today: Shares of Mindtree Ltd rallied more than 4 per cent to Rs 3,440 apiece on the BSE in Friday’s early trading session after the IT company reported a 27.5 per cent year-on-year (YoY) rise in its consolidated net profit in the September quarter.
Larsen & Toubro Ltd-backed Indian IT services provider’s revenue from operations rose 31.5 per cent. The management said with an order book of $518 million for the September quarter, signings for the first half this fiscal crossed $1 billion for the first time. The firm reported its eighth consecutive quarter of more than 20 per cent core profit margin.
The total contract value or TCV in the fiscal’s first half crossed USD 1 billion for the first time. Debashis Chatterjee, Chief Executive Officer and Managing Director of Mindtree said that the robust performance in the second quarter of FY23 marked a solid first half of the year, for the company.
Should you Invest in the Mid Cap IT Share?
“The company continues with its multi-pronged strategy of consolidating service lines, undertaking consistent investment, focusing on garnering multi-year engagements, and scaling up top accounts that would aid in sales traction moving forward. We believe Mindtree has a resilient business model and has established a proven track record of strong execution capabilities,” domestic brokerage and research firm Axis Securities while recommending a Buy rating on the midcap IT stock with a target price of Rs 3,720 per share.
Global brokerage firm Morgan Stanley has an equal weight rating on the stock and has raised the target to Rs 3,400 from Rs 3,150: “The company delivered a strong beat on results, robust deal wins, and solid margin execution. We raise revenue estimates by 2.1-3.8 per cent and margin forecast by 41-69 basis points.”
However, JPMorgan has an underweight call on the stock with a target of Rs 3,000. The firm has a cautious outlook as the merger with L&T Infotech remains a key thing to watch for: “We see concerns from a potential slowdown that has already impacted deal decision-making.”
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