Mehabe score: 5 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Mindtree is an international Information Technology consulting and implementation company that delivers business solutions through global software development.Site:MINDTREEMain Symbol:MINDTREE
Stock trades at 2496.0, above its 50dma 2380.69. It also trades above its 200dma 1895.19. The stock remains bullish on techicals
The 52 week high is at 2619.00 and the 52week low is at 962.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 47.62%
-‘s median sales growth is 17.49% of last 10 years
Weakness
– Stock is trading at 9.52 times its book value
-The company has delivered a poor sales growth of 11.26% over past five years.
Competition
– The industry trades at a mean P/E of 30.6x. Mindtree trades at the industry’s max P/E of 37.0x. MINDTREE trades at a P/E of 37.0x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. MINDTREE has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -1.0%. The max 1- month return was given by Infosys: a return of 6.78 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2292.0 cr compared to Rs 1909.0 cr for period ended Jun 2020, a rise of 20.1%
Operating Profits reported at Rs 464.0 cr for period ended Jun 2021 vis-vis 322.0 for period ended Jun 2020 .
Operating Margins expanded 337.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 20.85 compared to Rs 19.26 for previous quarter ended Mar 2021 and Rs 12.94 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8351.0 cr for period ended TTM vis-vis sales of Rs 7968.0 cr for the period ended Mar 2021, a growth of 4.6%. The 3 year sales cagr stood at 5.9%.
Net Profit reported at Rs 1241.0 cr for period ended TTM vis-vis sales of Rs 1110.0 cr for the period ended Mar 2021, rising 10.6%.
Company recorded a healthy Net Profit CAGR of 18.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1996.0 cr for period ended Mar 2021 vis-vis Rs 825.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 25.0% over the last 3 Years. – The stock has given a return of 148% on a 1 Year basis vis-vis a return of 33% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 76% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 13.92% vis-vis 13.27% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 14.19% vis-vis 15.08% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 47.62%
-‘s median sales growth is 17.49% of last 10 years – Stock is trading at 9.52 times its book value
-The company has delivered a poor sales growth of 11.26% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 2380.69 and is trading at 2496.0, thus bullish price action wise.
