Arihant Capital has given Hold recommendation for MindTree with a target price of Rs. 2183 in its research report issued on Apr 19, 2021

Arihant Capital’s research report on MindTree

Mindtree reported a stable set of numbers in Q4FY21. Revenue (CC Terms) and EBITDA stood in-line with our estimates while Revenue (INR) and PAT above our estimates. Company has a healthy order book of $ 375M. Consolidated revenue stood at INR 21,093 Mn, registering +2.9% YoY/4.2% QoQ. Net Revenues at $288 mn, up by 3.5% YoY/5.1%QoQ in constant currency, driven by significant traction in the client portfolio globally. Consolidated EBITDA stood at INR 4,626 Mn, up by 42.9% YoY/-1.1% QoQ. On the margins front, EBITDA margin improved by 615bps YoY/-119bps QoQ to 21.9%. Consolidated PAT saw a rise of 53.9%YoY/-2.9% QoQ to INR 3,173 Mn vs 2,062 Mn in Q4FY20.

Outlook

We value Mindtree at P/E of 24x to its FY23E EPS 90 , which yields a target price of INR 2,183 per share. We maintain a Hold rating on the stock.

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