Mindtree share price hits new high amid positive growth outlook – Stock up over 6%

In an otherwise subdued market, the shares of Mindtree surged over 6 per cent and touched a new high of Rs 3,393 per share on the BSE intraday trade on Friday, amid a positive growth outlook.

The stock, which has been surging for the last three sessions, has soared around 110 per cent from Rs 1616 per share on the BSE in the last six months as against a 9 per cent rise on BSE Sensex. Similarly, it has soared 62 per cent against a 12 per cent rally in the Sensex over three months.

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The mid-cap information technology (IT) consulting and services company reported a healthy set of numbers in the first quarter of the financial year 2021-22. It’s net profit jumped by 61.2 per cent year-on-year (YoY) at Rs 343.4 crore (up 8.2 per cent sequentially) in Q1FY22.

While broad-based growth across verticals aided the company’s revenue to rise by over 20 per cent YoY at Rs 2,291.7 crore for the quarter, while it grew by 8.6 per cent a quarter-on-quarter (QoQ) basis. In dollar terms, Mindtree’s revenue grew 7.7 per cent sequentially and profit was up by 7.5 per cent.

Similarly, the EBITDA margin was at 20.3 per cent, down 166 basis points (bps) sequentially, mostly led by headcount addition. The deal pipeline also grew by over 34 per cent QoQ (up 28.9 per cent YoY) to $504 million. It added 3,442 employees in the quarter. 

The market analysts predict that the company has a healthy order book led by the closure of certain deals (especially BFSI), an increase in multi-year deals, renewals, higher demand from retail & CPG clients, and traction in cloud and customer experience, which bode well for the IT company.

The stock at around 12:56 pm, was trading over 4.5 per cent higher to Rs 3343.35 per share on the BSE, as compared to a 0.5 per cent slip in the S&P BSE Sensex on Friday.