LTI Mindtree Analysis
- Mindtree was incorporated in 1999 by a group of 10 industrial professionals who came from Cambridge Technology Partners, Lucent Technologies, and Wipro, and this team was led by Ashok Soota.
- Mindtree is an international Information Technology consulting and implementation company that delivers business solutions through software development.
- The company offers services in business led analytics solutions, diagnostic and design, operations analytics, data analytics.
Last 5years CAGR (Compounded Annual Growth Rate) under different parameters –
- Sales Growth – 18.43%
- Profit Growth – 19.25%
- ROE (Return on Equity) – 32.76%
- ROCE (Return on capital employed) - 42.66%
- Stock Price – 28%
Company Essentials –
- Market Capitalization - ? 1,43,576.76 Cr.
- No. of Shares – 29.58 Cr.
- Face Value - ?1
- Dividend Yield – 1.13%
- Debt - ?0 Cr.
- Promoter Holding – 68.69%
- PE Ratio – 33.26
- Sector PE – 26.53
- P/B Ratio – 9.65
Reason behind the merger of Mindtree and LTI –
- L&T's 60% stake in Mindtree from 2019.
- Both the companies provide almost same type of service.
- Their costing will be saved by merging.
- Central decision-making power.
- Increasing Productivity.
- After the merger, LTI Mindtree will become the 5th largest company.
Conclusion:
- As this stock has great potential to outperform its competitors, management stated that its overall revenue could exceed $5 billion in the upcoming financial year.
- Investors looking for an outstanding IT stock can consider this stock, but currently, the company share price is slightly high, and we have to until there is a correction in the share price.