Mumbai: Shares of information technology consulting firm Mindtree Ltd on Tuesday closed at a 20-month low, as analysts cut the target price of the stock after the company reported weaker-than-expected June quarter earnings. The stock has now fallen in seven out of nine trading sessions.

Ambit Capital, PhillipCapital, Kotak Institutional Equities and Deutsche Bank have reduced the target price on the stock.

The stock touched a low of 560.35 a share, a level last seen on 19 November 2014, and fell as much as 8.71%, its steepest fall since 9 March.

The stock closed at 562.45 on BSE—a level last seen on 18 November 2014—falling 8.37%, the most since 9 March. India’s benchmark Sensex index rose 0.15% to close at 27,787.62 points..

Mindtree’s dollar revenue improved 2% sequentially to $199 million, while in rupee terms, its revenue inched up 0.6% to 1,327.6 crore in the quarter ended 30 June. Net profit declined 5.8% from the preceding March quarter to $18.5 million, while in rupee terms, profit fell 7.2% to 123.5 crore.

“We have significantly cut our FY17-18 estimates. Our estimates revision is primarily due to shift to IND-AS accounting, which led to 10% impact on FY16 earnings, lower revenue guidance for FY17 and lower margin assumption (despite management guidance of flat margins, which appears unrealistic). We also lower the valuation multiple to 14x FY18 P/E (16x earlier), in the wake of lower earnings visibility and inexpensive peer valuation," broking firm PhillipCapital said in a note to investors.

Also Read: Mindtree dollar revenue up 2% in Q1, missing analyst estimates

Mindtree saw a 2.3% sequential growth in the banking, financial services and insurance space, which accounts for 24.9% of total revenue, even as travel and hospitality declined 8%. It reported a 3.4% increase in business from the US, which accounts for 65% of total revenue, while Europe, which accounts for 23%, saw a 4% decline.

“We cut FY2017-19E revenues by 2-4% as we bake in growth slippage from large accounts (ex-top client) and build in surprise revenue decline at Bluefin acquisition. Mindtree has also disappointed on cost management (partly due to its prioritization of growth) though we believe that the recent quarter EBITDA (earnings before interest, tax, depreciation and amortization) margin is the trough with high probability of improvement. We moderate EBITDA margin assumption by 90-100 bps for FY2017-19E resulting in 7-12% cut in EPS," broking firm Kotak Institutional Equities said in a note to its investors.

Ambit Capital has rated the stock “sell" and reduced its target price to 620 a share, PhillipCapital has downgraded the stock to “neutral" and reduced its target price by 2% to 600 a share, Kotak Institutional Equities has a “reduce" rating on the stock and has reduced its target price by 14% to 570 a share. Deutsche Bank has downgraded the stock to “sell" from “hold" and lowered its price target by 26% to 500 a share.

Of the analysts covering the stock, 13 have a “buy" rating, 13 have a “hold" rating and 11 a “sell" rating, according to Bloomberg data.