MindTree moves higher after rating upgrade by a foreign brokerage

MindTree rose 3.17% to Rs 635.80 at 11:32 IST on BSE on media reports that a foreign brokerage has upgraded the stock to outperform from neutral citing attractive valuations.

Meanwhile, the S&P BSE Sensex was up 249.80 points or 1% at 25,150.26.

On BSE, so far 17,000 shares were traded in the counter as against average daily volume of 44,150 shares in the past one quarter. The stock hit a high of Rs 635.90 and a low of Rs 623.80 so far during the day. The stock had hit a record high of Rs 803.50 on 4 March 2016. The stock had hit a 52-week low of Rs 577.20 on 27 April 2015. The stock had underperformed the market over the past one month till 29 March 2016, sliding 13.31% compared with Sensex's 8.25% rise. The scrip had also underperformed the market in past one quarter, declining 15.58% as against Sensex's 4.52% fall.

The large-cap company has equity capital of Rs 167.79 crore. Face value per share is Rs 10.

The foreign brokerage expects a 15% plus compound annual growth rate (CAGR) in MindTree's earnings per share (EPS) over FY 2016-18.

On a consolidated basis, MindTree's net profit declined 4.61% to Rs 150.90 crore on 3.86% growth in net sales to Rs 1214.50 crore in Q3 December 2015 over Q2 September 2015.

Mindtree is a global information technology consulting firm specializing in corporate IT services and solutions.

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