MindTree share price: Mindtree shares down over 5% ahead of Q2 results


Mumbai: Shares of IT services firm Mindtree dropped more than 5 per cent in Thursday’s session ahead of its September quarter earnings announcement.

The brokerages expect the company to post a strong recovery from year ago.

At 11:06 am, shares of Mindtree were down 5.05 per cent to Rs 1,475.05 on the BSE, while benchmark Sensex dropped 0.45 per cent to 40,609.15 points.

Elara Capital expects Mindtree to report a 66.7 per cent jump in its net profit from a year ago to Rs 225.1 crore, while Kotak Institutional Equities expects net profits to rise 83.3 per cent to Rs 247.4 crore

Kotak Institutional Equities sees constant current sequential revenue growth of 2.9 per cent and cross-currency tailwind of 77 basis points (bps) for the company.

It believes revenue growth will be led by ramp up of Realogy deal, recovery in financial services and CPG verticals and continuing strong growth from the top client, while travel and hospitality vertical will remain subdued.

The brokerage expects EBIT margin increase of 90 bps due to continued cost control and revenue flow-through of Realogy deal.

The stock had touched a 52-week high of Rs 1,605.45 on Wednesday, and is up more than 84 per cent for the year to date.

The promoter holding in the stock has dropped by 590 basis points (bps) in the September quarter, while mutual funds and foreign institutional investors upped their stakes by 395 bps and 163 bps respectively.





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