Q4FY21 Result Update - MindTree Ltd - ICICI Direct

MindTree reported a healthy set of Q4FY21 numbers. The company reported dollar revenue growth of 5.2% QoQ in line with our estimate of 5.0% QoQ. EBITDA margin came in at 21.9% (down 119 bps QoQ, mainly led by wage hikes) but was higher than our expectation of 20.5%. The deal pipeline increased 20% QoQ (down 4.6% YoY) to US$375 million. The company added 989 employees in the quarter, with utilisation increasing 120 bps QoQ to 84.3% and offshore effort mix flat QoQ at 82.9%. The company has declared a dividend of Rs. 17.5/share.

Valuation & Outlook

Ramp up of deal wins, focus on annuity deals, client mining, expansion in Europe, traction in BFSI & travel, robust growth in digital technologies and broad based growth in clients are expected to enable the company to clock industry leading double digit growth in coming years. This, coupled with healthy margin prompt us to maintain our BUY rating with a revised target price of Rs. 2390/share (25x P/E on FY23E EPS) (earlier TP was Rs. 1970).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MindTree_Q4FY21.pdf

Shares of MINDTREE LTD. was last trading in BSE at Rs.2067.6 as compared to the previous close of Rs. 2064. The total number of shares traded during the day was 54914 in over 3945 trades.

The stock hit an intraday high of Rs. 2142.7 and intraday low of 2047. The net turnover during the day was Rs. 114655317.

Source : Equity Bulls

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