Mindtree shares extended losses on Tuesday and slipped 4 per cent intra-day to hit a new 52-week low of Rs 736. The downward trend, which led to a fall of 17 per cent in the stock's value in the past two days, began after three founders of the Bengaluru-based IT services company resigned following a change of control.
The stock fell below its previous low of Rs 753 touched on October 26, 2018 in the intra-day deals. Meanwhile, the stock on Monday turned ex-date for dividend of Rs 24 per share.
Last week, Larsen & Toubro (L&T) was categorised as the new 'promoter' of the IT firm after the former acquired 60.06 per cent stake in it.
In an exchange filing on Friday, Mindtree said its executive chairman Krishnakumar Natarajan, executive vice-chairman and chief operating officer (COO) N S Parthasarathy, and managing director and chief executive officer (CEO) Rostow Ravanan, had put in their papers as members of the board as well as employees of the company.
They, however, will stay as Board members till July 17, 2019 and as employees in line with their employment contracts to ensure smooth transition, it said in a regulatory filing.
Since May 14 -- the day it released mixed numbers for the March quarter of FY19-- the firm has underperformed the market. During the period, it has fallen 24 per cent relative to a 4 per cent rise in the S&P BSE Sensex.
Mindtree's mangement has given low teens revenue guidance for FY20, which is lower than the growth achieved in FY19 (19 per cent YoY). It has also guided a 100-120 bps improvement in margins.
“Slower growth in Mindtree is likely in FY20 for three reasons, namely client spending in the US slowing down on trade-war-related fears, client additions delayed till clarity emerges, and slower growth in large clients due to the base effect. Slower revenue growth may contain margin expansion opportunities resulting in an around 12 per cent cut in estimates. Also, potential management change could heighten volatility in performance in the next two quarters,” analysts at Anand Rathi Share and Stock Brokers said in company update.
At 12:14 pm, Mindtree was trading 1 per cent lower at Rs 761 on the BSE, as compared to 0.06 per cent rise in the S&P BSE Sensex. A combined 3.5 million shares have changed hands on the counter of the BSE and NSE so far