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Home / Markets / Stock Markets /  Mindtree shares surge nearly 30% in a month. Should you still hold or buy?

Mindtree shares continued to see the upwards trend as the stock was trading over 5% higher to 3,513 per share on the BSE on Monday. The midcap IT stock has gained nearly 30% in the last one month with the IT sector leading this bull run and Mindtree being a key outperformer.

Santosh Meena, Head of Research, Swastika Investmart Ltd said Mindtree posted a strong set of results with the beat on all fronts and it has a strong order book from different verticals. The stock has rallied significantly post its Q1 numbers where it is up around 22% in the august month itself.

“Technically overall trend is bullish but momentum indicators are trading in overbought territory which may cause some consolidation or correction in the near term where the 3000-2900 area will be a key demand zone to take fresh entry while 4000 is a medium term target," Meena said.

For the quarter ending June, Mindtree's net profit rose 61% annually to 343.3 crore driven by growth in revenues and various operational efficiency parameters and increased utilization. The Bengaluru-based IT services company’s revenue for the first quarter stood at 2,291.7 crore, up 20% on a year-on-year basis driven by broad-based growth. The company recorded highest ever order book of half-a-billion US dollars. It said that it has 260 active clients as of June 30, 2021.

As its preferred midcap pick in the IT space, Morgan Stanley expects Mindtree to continue to surprise positively on revenues in coming quarters, led by strong traction at top client (adding adjacencies to existing services), recovery in the travel vertical and a healthy deal pipeline with larger tenures providing visibility into FY23 growth as well, it said in a note on August 15. 

Mindtree offers technology consulting and data transformation consulting by integrating AI to deliver data-driven customer experiences.

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