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Valuations under pressure as Street seeks management stability in Mindtree

Management transition process would also weigh on the company's new client additions and overall operations, further denting its near-term growth


Shreepad S Aute
Though a good response to L&T’s open offer for Mindtree supported the stock in recent days, the management transition could lead to near-term uncertainty and impact growth outlook. According to analysts, there could be near-term pressure on the stock as the Street comes to terms with the FY20 outlook. At 16 times FY21 estimated earnings, the stock currently trades at a 16 per cent discount to its last five-year average valuation.
According to Anand Rathi Research, the top-10 accounts were being managed by the co-founders (Partha D Sarkar, Rostow Ravanan and Krishnakumar Natarajan). With changes in the management, it

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First Published: Jun 27 2019 | 11:06 PM IST

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