Buy MindTree, target Rs 1225: Motilal Oswal
Buy MindTree Ltd. at a price target of Rs 1225.0 .
Investment rationale by Motilal Oswal
We expect MTCL to grow its USD revenue/EPS at a CAGR of 17/37% over FY18-20. The stock trades at 23/17x FY19/20E EPS on our revised earnings. MTCL’s strong revenue momentum, in our view, will also help its margins in the quarters to come. As a result, we have increased our price target to INR1,225, which discounts forward earnings by 19x. Peers such as MPHL, HEXW and LTI continue trading in the range of 17-21x FY20E earnings. Maintain Buy.