MindTree Limited Solid quarter, raise TP to Rs 450 :Emkay,

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MindTree Limited

Solid quarter, raise TP to Rs 450

ACCUMULATE

CMP: Rs 386                                       Target Price: Rs 450

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n     MindTree’s results vindicate thesis on (1) strong revenue growth (+10% QoQ V/s exp of ~5% QoQ),(2) improvement in margins ( up by ~180 bps V/s est of ~110 bps increase)

n     Pfts at Rs 546 mn (+58% QoQ) significantly higher than estimates aided by better op performance and   hedging gains of ~Rs 170 mn. Hiring remains strong at 10%+ QoQ

n     Decent improvement in client metrics ( no of US$ 5 mn+ clients increase from 14 to  17) Top client/top 5/10 client revenues increase by 10/23/17% QoQ

n     Raise FY12/13E EPS by 9%/7% to ~Rs 41.1/44.9 driven by marginal increase in rev estimates, lower US$/INR assumptions to Rs 48/$, ACCU, TP Rs 450( V/s Rs 415 earlier)