Prabhudas Lilladher has given Buy recommendation for Indian Mindtree with a target price of Rs. 2170 in its research report issued on Mar 17, 2021
Prabhudas Lilladher’s research report on Mindtree
Mindtree’s cloud revenue multiplier strategy to increase wallet share for cloud deals is very impressive. We are increasing our EPS estimates by avg ~5% for FY22/23E led by 1) Management’s confidence in delivering industry leading growth in FY22 2) scope to further improve margins supported by revenue growth & employee pyramid re-shaping, 3) Recovery in TTH (Travel & Hospitality) and strong growth outlook in rest of the verticals and 4) sustenance of Cloud led large deal momentum in the longer term. Our EPS estimates remain higher than consensus by 7%/11% on FY22/23E.
We estimate 16.2% EPS CAGR over FY21-23 and value MTCL on 23X (earlier 22X) FY23 EPS of INR 94.3 and arrive at changed TP of INR 2170 (earlier: INR 1940). Maintain BUY!