MindTree hits new high; surges 20% post Q1 results

MindTree is trading 3% higher at Rs 1,056, extending its Friday’s 5% rally, in otherwise weak market after the technology services firm said it has been selected by ING Vysya, a premier private sector bank, as a strategic digital partner for its next generation mobility programme.

As part of the programme, Mindtree will help ING Vysya deliver multi-channel and multi-platform banking experience to its customers while creating a digital roadmap designed to help the bank penetrate untapped markets with a simple yet differentiated service, the company said.

The stock opened at Rs 1,025 and touched a record high of Rs 1,064 on BSE. A combined 300,000 shares changed hands on the counter so far on BSE and NSE.

Meanwhile, the stock has outperformed the market by surging 20% from Rs 881 on July 17, after reported a strong operational performance for the quarter ended June 30 2014 (Q1). The benchmark S&P BSE Sensex gained 1.4% during the same period.

While the demand environment continues to be strong and MindTree is confident of continuing its growth momentum, the growth in Q2 revenues may not be as high that in Q1FY15, primarily due to the high base, says analysts at Motilal Oswal Securities.

For FY15 company continues to maintain its guidance of doing better than its FY14 performance (15.1% YoY) and NASSCOM guidance of 13-15%.