Mindtree: Operationally weak, on expected lines; retain ADD on 'margin of safety' :: Kotak Sec, PDF link

Mindtree (MTCL)
Technology
Operationally weak, on expected lines; retain ADD on ‘margin of safety’. Not
completely immune from industry-wide growth deceleration, MT delivered a soft
quarter on revenue growth. Sharp qoq Re depreciation drove both solid operating profit
as well as net profit growth. We raise our EPS estimates on the back of revised margin
assumptions even as we cut our revenue estimates to reflect our increased caution on
the sector. We retain ADD and raise TP to Rs710/share (Rs685 earlier). MT continues to
fit our ‘reasonable margin of safety on multiples on conservative assumptions’ criterion.

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link : http://www.kotaksecurities.com/pdf/indiadaily/indiadaily17072012mv.pdf