Morgan Stanley maintains underweight on Mindtree, raises target price to Rs 725
Underweight MindTree Ltd. at a price target of Rs 725.0 .
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1914.30 crore, up 4.37% from last quarter sales of Rs 1834.20 crore and up 9.05% from last year same quarter sales of Rs 1755.40 crore. The company has reported net profit after tax of Rs 135.00 crore in the latest quarter.
Revenue growth in Q2 was better than expected but margins were soft, leading to weaker earnings, said Morgan Stanley. Management did not comment on its growth outlook, though it indicated the deal pipeline is healthy. Upside risks include strong execution and significant improvement in margins, said Morgan Stanley.