Mindtree’s superior growth rates trumps its client concentration issues; expect very good performance over next few quarters

Should domestic sales pick up, then Bharat Forge would be firing on all cylinders
June 17, 2021
L&T Technology to benefit from increased deal flow post Covid, client specific issues are now behind the company and client concentration has improved; presence in niche verticals an advantage
July 17, 2021

Mindtree is a leading tier 2 software company and now part of the L&T group. Change of ownership led to short term disruption however, performance has now stabilized and growing at top quartile of the industry. Deal wins have improved and apart from its top client Microsoft has increasing engagement, several new accounts are shaping up very well. Margins are stable due to better operating leverage, offshoring and larger sized engagements. We have an over weight rating due to superior growth rates, good earnings visibility and focused offerings. The company has exposure to the travel and hospitality segment which had been a laggard but is now turning around with normalcy in key markets – 15-07 -2021 Price: 2731.95 Rating: Over Weight Recommendation: Buy

Disclosure

Elixir Equities Private Limited (hereinafter referred to as “EEPL”) is a registered Member of National Stock Exchange of India Limited, BSE Limited and Depository Participant of the Central Depository Services Ltd. It is also a SEBI registered Portfolio Manager. We have been granted certificate of Registration as a Research Analyst with SEBI. Registration no. is INA000004787 for the period of 5 (Five) Years from 19th May, 2017.

EEPL or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in any of the companies covered by us. However, we or our clients, relatives and associates may have an investment / trading / arbitrage / market making (informal) position of less than 1% financial interest/beneficial ownership in the companies covered by us and recommended through this portal.

We, our associates/analyst have not received any compensation from any of the companies covered by us during the past twelve months. Neither EEPL nor its analyst has served as an officer, director or employee of any of the companies covered by us. We do provide any service to any of the companies covered by us. The views expressed herein are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.

The information and opinions in this report have been prepared by EEPL and are subject to change without any notice.

Our views and opinions are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. Nothing in this website / portal / application constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This service may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. EEPL accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this website / portal / app.

We submit that no material disciplinary action has been taken on EEPL by any Regulatory Authority.

This website/ portal / service/ app is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject EEPL and affiliates to any registration or licensing requirement within such jurisdiction.

RATING RATIONALE

EEPL endeavours to provide objective opinions and recommendations.

We assign Buy, Hold and Sell ratings on the securities covered by us.
Our rationale for these ratings has Super, Over, Neutral and Nil Weight ratings these securities as well. These Super, Over, Neutral and Nil Weight ratings serve as a guide to the quantum / weightage of that security which may be held in your portfolio.

The ratings are for long term investing for a minimum of three years unless specified.

 

Leave a Reply

Your email address will not be published. Required fields are marked *