Mindtree CEO and MD Debashish Chatterjee said the company continued its positive revenue momentum during Q3 FY22 on the back of strong demand, aggressive customer mining and end-to-end digital transformation capabilities.
“MTCL reported healthy deal TCV of $358 million despite weak season. In the quarter, it won 10 cloud deals on the strength of an expanded partnership with Hyperscaler. Demand remains strong with increasing number of deals coming in with large tails of growth,” highlighted analysts at Philips Capital in a note.
The brokerage has a buy rating on IT Stock with a target price of ₹5,249 as it believes Mindtree is one of the few companies operating on both engines, with strong sustainable growth and consistent growth in margins.
Mindtree’s revenue up nearly 36% during the third quarter ₹2,750 crore in the quarter under review from ₹2,023.7 crore in the year-ago period.
According to Motilal Oswal, management’s increased focus on annuity revenue and strategic accounts is reflected in its revenue and customer mix. “A strong outlook on strategic accounts, good deal signing and ability to maintain superior margins are major positives,” the note said.
As the major positive has already been captured, Motilal Oswal sees limited upside thereafter. its target value is ₹4,880 per share and maintains its neutral rating.
However, another brokerage house Nirmal Bang has given a sell rating on Mindtree shares with a target price of ₹3,841 because it believes earnings were not strong enough to warrant higher expectations.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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