Trade Nivesh What should investors do with MindTree stock post Q3: buy, sell or hold?
Kotak Institutional Equities maintained reduce call on the stock and raised target price to Rs 830 from Rs 725 per share.
Mindtree share price declined 1 percent in early trade on January 15 even after the company announced better-than-expected numbers in the quarter ended December 2019.
The company's Q3 net profit jumped 45.9 percent to Rs 197 crore for the quarter ended December 2019 (Q3FY20) against Rs 135 crore in the previous quarter.
The revenue of the company rose 2.7 percent to Rs 1,965.3 crore versus Rs 1,914.3 crore, however, dollar revenue was down 7.2 percent at $251.5 million versus $271 million, QoQ.
Earnings before interest, tax (EBIT) was up 33.2 percent at Rs 236.4 crore versus Rs 177.5 crore, while EBIT margin was up 270 bps at 12 percent versus 9.3 percent, QoQ
Kotak Institutional Equities maintained reduce call on the stock and raised target price to Rs 830 from Rs 725 per share.
An increase in target captures 6-14% increase in FY20-22 EPS, it added.
The company has built up close to $887 million of cash flow hedges at average Rs 75.44 per dollar. Cash flow hedges drive EPS revision and 80-90 bps increase in margin assumption, said Kotak Institutional Equities.
Morgan Stanley has maintained underweight call but raised the target to Rs 820 from Rs 725 per share.
Research house raised FY20-22 EPS estimates by up to 9 percent on strong margin display in Q3.
The upside risks include strong execution and a further improvement in margins, said Morgan Stanley.
At 09:18 hrs, Mindtree was quoting at Rs 863.00, down Rs 0.75, or 0.09 percent on the BSE.
ASK AN EXPERT TRADE NIVESH
Kotak Institutional Equities maintained reduce call on the stock and raised target price to Rs 830 from Rs 725 per share.
Mindtree share price declined 1 percent in early trade on January 15 even after the company announced better-than-expected numbers in the quarter ended December 2019.
The company's Q3 net profit jumped 45.9 percent to Rs 197 crore for the quarter ended December 2019 (Q3FY20) against Rs 135 crore in the previous quarter.
The revenue of the company rose 2.7 percent to Rs 1,965.3 crore versus Rs 1,914.3 crore, however, dollar revenue was down 7.2 percent at $251.5 million versus $271 million, QoQ.
Earnings before interest, tax (EBIT) was up 33.2 percent at Rs 236.4 crore versus Rs 177.5 crore, while EBIT margin was up 270 bps at 12 percent versus 9.3 percent, QoQ
Kotak Institutional Equities maintained reduce call on the stock and raised target price to Rs 830 from Rs 725 per share.
An increase in target captures 6-14% increase in FY20-22 EPS, it added.
The company has built up close to $887 million of cash flow hedges at average Rs 75.44 per dollar. Cash flow hedges drive EPS revision and 80-90 bps increase in margin assumption, said Kotak Institutional Equities.
Morgan Stanley has maintained underweight call but raised the target to Rs 820 from Rs 725 per share.
Research house raised FY20-22 EPS estimates by up to 9 percent on strong margin display in Q3.
The upside risks include strong execution and a further improvement in margins, said Morgan Stanley.
At 09:18 hrs, Mindtree was quoting at Rs 863.00, down Rs 0.75, or 0.09 percent on the BSE.
ASK AN EXPERT TRADE NIVESH
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