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Please refer to important disclosures at the end of this report
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Mindtree Ltd is an international information technology consulting and
implementation company that delivers business solutions through global
software development. The company has reported consistent revenue growth
over the years with 18.3% slaes CAGR over 5 years ended FY19. In FY20
also Mindtree’s annualized sales grew by 10.6% to 7,764cr. All the revenue
verticals aided this growth.
During the quarter 4QFY20, volumes grew by 4.1% while pricing took a hit.
The company’s key revenue growth was driven by Hitech & Media verticals.
The company won deals more than expected with deals worth $1.2bn signed
for the full year FY20, which is the highest ever deal wins.. Mindtree is further
likely to benefit from the widespread adoption of digital/collaborative tools in
response to the pandemic.
It is virtually a debt free company and has been maintaining a healthy
average dividend payout of 30%.It delivered an RoE of 25.1% and is trading
at valuation PE 23.6x of TTM earnings. Hence BUY.
BUY
CMP `904
0.8
Reuters Code
MINT.BO
MTCL IN
BSE Sensex
30,819
Nifty
8,792
IT
Market Cap (` cr)
14,880
52 Week High / Low
1062/653
Avg. Daily Volume
46,087
10
Face Value (`)
Jaikishan Parmar
022 – 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
Mindtree Ltd
Others | IT
May 20, 2020
2
Mindtree|IT
2
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Mindtree
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)