Home / Markets / Stock Markets /  Mindtree shares plunge after Q3 results. What brokerages say on the IT stock?
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IT stock Mindtree slipped over 4% to 4,551 per share on the BSE in Friday's opening deals after the company's consolidated net profit rose 34% 437.5 crore for the December 2021 quarter, and expects to continue its growth momentum on the back of robust demand.

Mindtree CEO and MD Debashis Chatterjee said the company has continued its positive revenue momentum through the third quarter of FY22 on the back of robust demand, aggressive customer mining, and end-to-end digital transformation capabilities.

“MTCL reported healthy deal TCV of $358 million despite weak seasonality. It won 10 cloud deals this quarter on back of expanded partnership with one of the hyperscalars. Demand continues to be strong with increasing number of deals coming with large tail of growth," highlighted analysts at PhillipCapital in a note.

The brokerage has a Buy rating on the IT stock with a target price of 5,249 as it believes Mindtree is one of the few companies which is firing on both the engines, strong sustainable growth and steady increase in margins.

Mindtree's revenue during the third quarter grew about 36% to 2,750 crore in the quarter under review from 2,023.7 crore in the year-ago period.

The management’s increased focus on annuity revenue and strategic accounts is reflected in its revenue and client mix, as per Motilal Oswal. “A strong outlook on strategic accounts, decent deal signings, and the ability to sustain improved margin are key positives," the note stated.

As the key positives are already captured, Motilal Oswal sees limited upside hereafter. It has a target price of 4,880 per share and maintais its Neutral rating.

However, another brokerage house Nirmal Bang has a Sell rating on Mindtree shares with a target price of 3,841 as it believes that the earnings were not strong enough for elevated expectations.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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