 "MindTree gains as Q2 beats forecast")
MindTree is trading higher by 2% at Rs 1,433 on the BSE in an otherwise subdued market after the company reported 14.5% quarter-on-quarter (QoQ) growth in its consolidated net profit at Rs 158 crore for the quarter ended September 2015 (Q2). The mid-sized IT firm posted a profit of Rs 138 crore in the same quarter year ago.
Revenue grew 19.1% at Rs 1,169 crore on QoQ basis.
Analysts on an average had expected net profit of Rs 154 crore on revenues of Rs 1,123 crore.
The company said it is confident of beating Nasscom’s industry growth guidance of 12-14% despite a traditionally slow third quarter.
Analyst at Religare recommends ‘Hold’ rating on the stock with a target price of Rs 1,300.
“The company won deals worth TCV of US$ 193 million during the quarter, mostly renewal in nature and new signings growth was flattish year-on-year. While we like MTCL’s growth profile, we remain cautious on the stock as street expectations are high and valuations at 17.4x FY17E are expensive,” broking firm said in a client note.
The stock hit a high of Rs 1,475 so far and has seen combined 581,779 shares changing hands on the counter on the BSE and NSE till 09:49 am.
Revenue grew 19.1% at Rs 1,169 crore on QoQ basis.
Analysts on an average had expected net profit of Rs 154 crore on revenues of Rs 1,123 crore.
The company said it is confident of beating Nasscom’s industry growth guidance of 12-14% despite a traditionally slow third quarter.
Analyst at Religare recommends ‘Hold’ rating on the stock with a target price of Rs 1,300.
“The company won deals worth TCV of US$ 193 million during the quarter, mostly renewal in nature and new signings growth was flattish year-on-year. While we like MTCL’s growth profile, we remain cautious on the stock as street expectations are high and valuations at 17.4x FY17E are expensive,” broking firm said in a client note.
The stock hit a high of Rs 1,475 so far and has seen combined 581,779 shares changing hands on the counter on the BSE and NSE till 09:49 am.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%