Mindtree share price zooms 4% on strong second quarter results, dividend announcement

Mindtree shares price zoomed over 4 per cent on Friday as investors' sentiment turned positive. The buying was buoyed as the L&T Group Company reported a strong second-quarter result on Thursday. The  Bengaluru headquartered IT company also announced a final dividend of Rs 27 per equity share of par value Rs 10 each for the financial year ended March 31, 2022.

At 10:30 am, the Mindtree stock was quoting a price of Rs 128 apiece, gaining 3.87 per cent, on the NSE and BSE. 

The company on Thursday post-market released its Q2 result. Its consolidated net profit for the quarter ended September 2022 came in at Rs 508.7 crore, growing 27.5 per cent over Rs 398.9 crore in the same quarter last year. Revenue from operations stood at Rs 3,400.4 crore, up 31.5 percent over Rs 2,586.2 crore in the corresponding quarter of the previous fiscal. Sequentially, profit grew 7.9 percent and revenue jumped 8.9 percent.

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Mindtree share price target by brokerages

Several brokerages have revised the target for Mindtree. While Morgan Stanely has revised its target for the scrip to Rs 3400 from Rs 3150, JP Morgan has increased the target to Rs 3000.

Debashis Chatterjee, Chief Executive Officer and Managing Director of Mindtree said that the robust performance in the second quarter of FY23 marked a solid first half of the year, for the company.

"We not only delivered strong revenues of USD 422.1 million, up 7.2 per cent sequentially in constant currency, but also maintained our EBITDA margin at a healthy 21 per cent despite wage hikes across the board, making it our seventh consecutive quarter of more than 5 per cent revenue growth in constant currency, and eighth consecutive quarter of more than 20 per cent EBITDA margin," Chatterjee said. 

EBITDA refers to earnings before interest, taxes, depreciation and amortisation.

The total contract value or TCV in the fiscal's first half crossed USD 1 billion for the first time. 

The 52-week high and low of the Mindtree share at NSE are Rs 5,060 and Rs 2,649 respectively. So far this year, the scrip has given a negative return of 26.10 per cent.