MINDTREE SURE SHOT LEVEL -- TRADE NIVESH

TRADE NIVESH

MINDTREE SHUR SHOT LEVELS 

TECHNICAL VIEW OF MINDTREE

1:- MINDTREE STOCK TODAY BUY LEVEL IS 950.73.

2:- MINDTREE STOCK TODAY SELL LEVEL IS 945.41.

3:- STRONG RESISTANCE IS 959.67.

4:- STRONG SUPPORT IS 940.03.

FUNDAMENTAL  VIEW OF MINDTREE

Is L&T’s hostile bid for Mindtree worth it?

Mumbai-based Larsen & Toubro’s (L&T) plan to buy out Bengaluru-headquartered Mindtree has left many asking: Why is an 80-year-old engineering and construction company so interested in a mid-sized IT outsourcing firm that it is willing to risk a hostile takeover bid worth close to Rs10,700 crore ($1.6 billion)?

The answer, according to industry analysts, is straightforward: self-preservation.

“L&T’s five-year strategy for financial years 2016 to 2021 involves growing of their services business, apart from non-core divestment,” said Lavina Quadros, equity analyst at Jefferies India. Mindtree acquisition is in line with the management’s vision to increase the portion of services in its overall portfolio, in order to offset the volatility in major verticals such as banking and financials, Quadros added.

On March 19, L&T signed a deal (pdf) to buy a 20.32% stake in Mindtree from VG Siddhartha, owner of the country’s largest coffee shop chain, Café Coffee Day (CCD). He was the largest shareholder of Mindtree. L&T also announced plans to acquire a controlling stake in Mindtree through an open offer to public shareholders. The Mindtree management will meet today (March 26) to consider L&T’s offer, and also propose a share buyback program to counter the hostile bid, if possible.

Hostile takeover bids are not common in India, and L&T’s move upset many. “Mindtree has not been designed as an “asset” to be bought and sold,” the company’s co-founder and non-executive director Subroto Bagchi said in a tweet on March 17.

Well, the reality is that Mindtree can prove to be quite the “asset” that L&T needs.