Result Update MindTree Limited Reco: ACCUMULATE ::Emkay

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Result Update

MindTree Limited Reco: ACCUMULATE CMP: Rs 449 Target Price: Rs 500 Continuing to deliver along thesis, raise TP to Rs 500 ·      MindTree’s results vindicate thesis on improving op performance. While rev at US$ 104 mn were tepid, mgns improved by ~440 bps QoQ aided by weak INR, ahead of est ·      Op metrics show mixed. Improvement in client mining with top 1/5/10 clients growing by 20/12/7% QoQ ·      Rev growth bolstered by one time transition income as vol growth remains anemic (-0.8% QoQ). Momentum in IT Svcs (+6.6% QoQ) continue while PES remains weak (-5.4% QoQ) ·      Raise FY12/13E EPS by 18%/12% to ~Rs 48.4/50.4 driven by lower currency resets (factor in Rs 49.5/$ for FY13). Retain ACCUMULATE, TP Rs 500 (V/s Rs 450 earlier)