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Mindtree: Brokerage on IT stocks giving 760% returns in 5 years ‘Neutral’, reduced target price, is in your portfolio?

 

The brokerage house has a mixed reaction after the Mindtree results. Most of the stocks are seen neutral.

Mindtree Stock Price: Midcap segment IT services company Mindtree’s shares are seeing a decline today. The company’s stock weakened by about 2.5 percent to a price of Rs 3857. Whereas on Monday it closed at Rs 3958. On Monday, the company released its results for the March quarter. The company’s margins have been weaker than expected. However, the profit and revenue of the company has been as per the estimates. The brokerage house has a mixed reaction after the results. Most of the stocks are seen neutral. The brokerage house believes that going forward, the benefit of continuing strong demand environment will be there. But right now there is very little room for upside in the stock.

Limited upside potential in the stock

Brokerage house Motilal Oswal has given neutral rating in the stock and has given a target of Rs 4230. Whereas the stock closed at Rs 3961 on Monday. That is, there is a 7 percent upside scope in this. The brokerage house says that Mindtree will be supported by a strong demand environment in the near term. However, the eyes of the customers will remain on the transformational initiative in the long term. Cast pressure is visible on the company due to supply side challenges, but the company is focused on further growth. Management is confident that 20% EBITDA will be maintained on a structural basis. The brokerage says that the stock is currently trading at 28x FY24E EPS and there is only limited upside scope from here.

View of Global Brokerage House

Brokerage house Nomura has given a target of Rs 4320 while giving a neutral rating in the stock of Mindtree. The brokerage says that the company’s revenue has been better than expected. While Goldman Sachs has reduced the target from Rs 3825 to Rs 3744, giving a neutral rating in the stock. The brokerage believes that the margins of the company in the March quarter have been weaker than expected. The brokerage expects a strong demand outlook going forward. For the company, 23 percent in FY23 and 13 percent in FY24 have been estimated to grow. Morgan Stanley has given an equal rating on the stock and has reduced the target from Rs 5100 to Rs 4450.

Multibagger Stocks for Investors

Mindtree stock has proved to be a multibagger for investors. In the last 5 years, the stock has given more than 760 percent return and its price has increased from Rs 450 to Rs 3961. At the same time, the return of the stock has been 86 percent in 1 year. Although the stock has weakened 20 percent so far this year.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews.in. Markets are risky, so take expert opinion before investing.)
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