Mindtree shares continued to follow the uptrend, with the stock trading more than 5% for ??3,513 per share on BSE on Monday. Mid-cap IT stock has gained nearly 30% in the past month, with IT leading the bull run and Mindtree being a major outperformer.
Santosh Meena, Head of Research, Swastika Investmart Ltd, said Mindtree has shown strong results with pace on all fronts and has a strong order book from different verticals. The stock recovered significantly from its first-quarter numbers, where it was up about 22% in August itself.
“Technically, the general trend is bullish, but momentum indicators are trading in overbought territory, which may lead to a short-term consolidation or correction, where the 3000-2900 area will be a key demand area for a new entry. while 4000 is a medium term goal, ”says Meena.
For the quarter ending June, Mindtree’s net profit grew 61% annually to ??343.3 crore driven by revenue growth and various metrics of operational efficiency and increased usage. Bengaluru-based IT services company revenue for the first quarter was ??2,291.7 crore, up 20% year-over-year on widespread growth. The company recorded the highest ever order book of half a billion US dollars. He said he had 260 active clients as of June 30, 2021.
As the preferred midcap pick in the IT space, Morgan Stanley expects Mindtree to continue to surprise positively on revenues over the next few quarters, thanks to strong traction among major customers (adding adjacencies to services existing), a recovery in the travel industry and a healthy transaction pipeline. with larger mandates also providing visibility into FY23 growth, he said in an August 15 memo.
Mindtree offers technology and data transformation consulting by integrating AI to deliver data-driven customer experiences.
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