Mindtree share price surges post Q1 results; Happiest Minds up over 7%1 min read . Updated: 14 Jul 2021, 10:44 AM IST
- Edelweiss said that Mindtree delivered a strong set of Q1FY22 numbers, in-line with its estimates
IT firms Mindtree and Happiest Minds shares surged on Wednesday with shares of Mindtree jumping to a new high of ₹2,721 per share after it reported a healthy set of earnings for Q1FY22. Meanwhile, shares of Happiest Minds Technology was up over 7% to ₹1,276 apiece on the BSE in early deals.
Mindtree's Q1 net profit rose to ₹343.3 crore, up reported a 61% YoY and 8% QoQ. Its revenue in dollar terms came at $310.5 million, witnessing a growth of 7.7% quarter-on-quarter (QoQ) and 22.6% YoY. The IT company recorded its highest ever order book of half-a-billion US dollars, growth of 34% QoQ.
“We are pleased to report a strong start to FY22 with broad-based first-quarter growth across all service lines and industry segments," said Debashis Chatterjee, chief executive officer and managing director, Mindtree. “Our highest-ever orderbook of $504 million affirms that the focused execution of our strategy and our client-centricity in re-imagining business models for the digital era are helping us drive profitable and sustainable growth."
In a note, domestic brokerage and research firm Edelweiss said that Mindtree delivered a strong set of Q1FY22 numbers, in-line with their estimates. ''The company is witnessing accelerated adoption of digital and robust pipeline across industries. We believe strong demand and robust execution will lead to industry leading profitable double-digit growth in FY22,'' it said.
Edelweiss has maintained its ‘Buy’ rating on the stock and revised its target price to ₹2,850 (from ₹2,821) as it rolls forward to Q3FY23E.
Yes Securities in a note said that Mindtree would continue to make investments to boost growth and is expected to post high teen revenue growth for FY22, while maintaining EBITDA margin of 20%+. The brokerage has an 'Add' rating to the stock with target price of ₹2,735 per share (Upside: 9.6%).
ICICI Securities' note stated, ''At 28x FY23E EPS, street is already factoring in mid-teens revenue growth with 20%+ EBITDA margin over the medium term. scope for further surprises/upgrades are less likely. Maintain Hold.''
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