Mindtree
Market Cap
₹145.4b
Last Updated
2020/01/18 12:45 UTC
Data Sources
Company Financials +
Executive Summary
Mindtree Limited provides digital transformation and technology services in India, the United States, Canada, Continental Europe, the United Kingdom, and internationally.
Snowflake Analysis
Flawless balance sheet with high growth potential and pays a dividend.
Similar Companies
Share Price & News
How has Mindtree's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 532819 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.3%
532819
1.8%
IN IT
1.8%
IN Market
1 Year Return
-0.4%
532819
12.0%
IN IT
8.0%
IN Market
Return vs Industry: 532819 underperformed the Indian IT industry which returned 13.6% over the past year.
Return vs Market: 532819 underperformed the Indian Market which returned 6.7% over the past year.
Shareholder returns
| 532819 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | 1.8% | 1.8% |
| 30 Day | 15.4% | 3.8% | 3.6% |
| 90 Day | 20.0% | 6.3% | 6.5% |
| 1 Year | 3.4%-0.4% | 14.9%12.0% | 10.0%8.0% |
| 3 Year | 99.8%85.9% | 80.8%70.2% | 35.0%27.9% |
| 5 Year | 48.4%34.1% | 67.8%52.4% | 36.5%24.2% |
Price Volatility Vs. Market
How volatile is Mindtree's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Mindtree Limited (BOM:532819): Are Forecast Margins sustainable?Valuation
Is Mindtree undervalued compared to its fair value and its price relative to the market?
23.31x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 532819 (₹887.3) is trading above our estimate of fair value (₹469.19)
Significantly Below Fair Value: 532819 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 532819 is poor value based on its PE Ratio (23.4x) compared to the IT industry average (13x).
PE vs Market: 532819 is poor value based on its PE Ratio (23.4x) compared to the Indian market (13.8x).
Price to Earnings Growth Ratio
PEG Ratio: 532819 is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: 532819 is overvalued based on its PB Ratio (4.6x) compared to the IN IT industry average (0.8x).
Next Steps
Future Growth
How is Mindtree forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
21.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 532819's forecast earnings growth (20% per year) is above the savings rate (6.5%).
Earnings vs Market: 532819's earnings (20% per year) are forecast to grow faster than the Indian market (19.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 532819's revenue (10.7% per year) is forecast to grow faster than the Indian market (8.6% per year).
High Growth Revenue: 532819's revenue (11% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 532819's Return on Equity is forecast to be high in 3 years time (22.5%)
Next Steps
Past Performance
How has Mindtree performed over the past 5 years?
6.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 532819 has high quality earnings.
Growing Profit Margin: 532819's current net profit margins (8.2%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: 532819's earnings have grown by 6.5% per year over the past 5 years.
Accelerating Growth: 532819's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 532819 had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the IT industry average (6.6%).
Return on Equity
High ROE: 532819's Return on Equity (19.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Mindtree's financial position?
Financial Position Analysis
Short Term Liabilities: 532819's short term assets (₹29.2B) exceed its short term liabilities (₹10.9B).
Long Term Liabilities: 532819's short term assets (₹29.2B) exceed its long term liabilities (₹5.1B).
Debt to Equity History and Analysis
Debt Level: 532819's debt to equity ratio (0.05%) is considered satisfactory.
Reducing Debt: 532819's debt to equity ratio has reduced from 0.3% to 0.05% over the past 5 years.
Debt Coverage: 532819's debt is well covered by operating cash flow (59400%).
Interest Coverage: 532819's interest payments on its debt are well covered by EBIT (36.4x coverage).
Balance Sheet
Inventory Level: 532819 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 532819's debt is covered by short term assets (assets are 1827.3x debt).
Next Steps
Dividend
What is Mindtree's current dividend yield, its reliability and sustainability?
1.81%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 532819's dividend (1.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).
High Dividend: 532819's dividend (1.8%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).
Stability and Growth of Payments
Stable Dividend: 532819's dividend payments have been volatile in the past 10 years.
Growing Dividend: 532819's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (10.6%), 532819's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 532819's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).
Next Steps
Management
What is the CEO of Mindtree's salary, the management and board of directors tenure and is there insider trading?
4.6yrs
Average management tenure
CEO
Mindtree has no CEO, or we have no data on them.
Management Age and Tenure
4.6yrs
Average Tenure
50yo
Average Age
Experienced Management: 532819's management team is considered experienced (4.6 years average tenure).
Board Age and Tenure
0.5yrs
Average Tenure
60.5yo
Average Age
Experienced Board: 532819's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: 532819 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 4,139 |
| Max Price | ₹752.00 |
| Entity | Company |
| Shares | 40,000 |
| Max Price | ₹746.66 |
| Entity | Individual |
| Shares | 1,500 |
| Max Price | ₹740.06 |
| Entity | Individual |
| Shares | 15,861 |
| Max Price | ₹717.50 |
| Entity | Company |
| Shares | 12,454 |
| Max Price | ₹715.96 |
| Entity | Company |
| Shares | 6,282 |
| Max Price | ₹720.00 |
| Entity | Company |
| Shares | 120,000 |
| Max Price | ₹722.44 |
| Entity | Individual |
| Shares | 4,000 |
| Max Price | ₹708.11 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹720.00 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | ₹750.96 |
| Entity | Company |
| Shares | 20,000 |
| Max Price | ₹726.99 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹715.00 |
| Entity | Individual |
| Shares | 20,000 |
| Max Price | ₹700.00 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President |
| Shares | 10,635 |
| Max Price | ₹680.55 |
| Entity | Individual |
| Shares | 1,775 |
| Max Price | ₹693.44 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | ₹750.96 |
| Entity | Company |
| Shares | 60,000 |
| Max Price | ₹690.33 |
| Entity | Individual |
| Shares | 8,388 |
| Max Price | ₹980.00 |
| Entity | Company |
| Shares | 871,000 |
| Max Price | ₹919.15 |
| Entity | Company |
| Shares | 51,325,371 |
| Max Price | ₹980.00 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP & General Counsel |
| Shares | 4,255 |
| Max Price | ₹966.47 |
| Entity | Individual |
| Shares | 40,000 |
| Max Price | ₹969.64 |
| Entity | Individual |
| Shares | 10,635 |
| Max Price | ₹959.10 |
| Entity | Individual |
| Shares | 3,500 |
| Max Price | ₹967.36 |
| Entity | Company |
| Shares | 855 |
| Max Price | ₹967.50 |
| Entity | Company |
| Shares | 25,000 |
| Max Price | ₹971.03 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | ₹979.90 |
| Entity | Company |
| Shares | 26,974 |
| Max Price | ₹980.00 |
| Entity | Company |
| Shares | 97,815 |
| Max Price | ₹980.00 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President |
| Shares | 3,602 |
| Max Price | ₹980.35 |
| Entity | Company |
| Shares | 356,738 |
| Max Price | ₹979.98 |
| Entity | Company |
| Shares | 230,135 |
| Max Price | ₹979.93 |
| Entity | Company |
| Shares | 2,499,619 |
| Max Price | ₹980.00 |
| Entity | Company |
| Shares | 71,835 |
| Max Price | ₹979.97 |
| Entity | Company |
| Shares | 73,953 |
| Max Price | ₹979.99 |
| Entity | Company |
| Shares | 13,440 |
| Max Price | ₹979.98 |
| Entity | Company |
| Shares | 886,438 |
| Max Price | ₹979.81 |
| Entity | Company |
| Shares | 1,168 |
| Max Price | ₹972.00 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹889.96 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Balaji Krishnan (52yo)
Senior Vice President
K. Madhusudhan (51yo)
Chief Technology Officer
- Tenure: 5.3yrs
Srinivasa Kottamasu (51yo)
Senior Vice President
Suresh Prakash (52yo)
Senior Vice President
Erwan Carpentier (46yo)
Senior VP & General Counsel
Vedavalli Sridharan
Company Secretary
- Tenure: 4.6yrs
- Compensation: ₹4.24m
Manas Chakraborty (50yo)
Senior VP and Head of Enterprise Service Lines
- Tenure: 1.7yrs
Pramod Panda (45yo)
Senior Vice President
Anil Rao (50yo)
Senior Vice President
R. Rajesh Kumar (44yo)
Vice President
Board Members
Milind Sarwate (60yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: ₹3.00m
Akshaya Bhargava (62yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: ₹6.76m
Anilkumar Naik (77yo)
Non-Executive Chairman
- Tenure: 0.5yrs
Apurva Purohit (53yo)
Lead Independent Director
- Tenure: 2.8yrs
- Compensation: ₹3.00m
Bijou Kurien (60yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: ₹2.13m
Mysore Prasanna (72yo)
Independent Director
- Tenure: 0.5yrs
Ramamurthi Raman (61yo)
Non-Executive Director
- Tenure: 0.5yrs
SNS Subrahmanyan (59yo)
Non-Executive Vice Chairman
- Tenure: 0.4yrs
Jayant Patil (65yo)
Non-Executive Director
- Tenure: 0.5yrs
Debashis Chatterjee (53yo)
CEO, MD & Director
- Tenure: 0.4yrs
Company Information
Mindtree Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mindtree Limited
- Ticker: 532819
- Exchange: BSE
- Founded: 1999
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₹145.409b
- Shares outstanding: 164.57m
- Website: https://www.mindtree.com
Number of Employees
Location
- Mindtree Limited
- Global Village
- RVCE Post
- Bengaluru
- Karnataka
- 560059
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532819 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Mar 2007 |
| MINDTREE | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Mar 2007 |
Biography
Mindtree Limited provides digital transformation and technology services in India, the United States, Canada, Continental Europe, the United Kingdom, and internationally. It operates in four segments: Retail, Consumer Packaged Goods and Manufacturing; Banking, Financial Services and Insurance; Technology, Media and Services; and Travel and Hospitality. The company offers Flooresense, an intelligent real-time recommendation platform; intelligent video surveillance solutions; Gladius connected buildings platform, an Internet of Things platform; ShotClasses, a mobile based micro-learning platform for enterprises; and InspectMind, a software as a service platform. It also provides digital services, including cloud, data analytics, digital commerce and marketing, mobility, user experience design, and portals and collaboration services. In addition, the company offers operational services comprising agile, application development and support, automation, business process management, infrastructure management, test engineering, integrated, and reliability engineering and management services. Further, it provides information technology consulting, engineering research and development, and Microsoft Azure-based solutions. It serves the banking, capital market, consumer packaged goods, education, enterprise independent software vendor, insurance, manufacturing, media and entertainment, retail, semiconductor, smart device, transportation and logistics, and travel and hospitality industries. The company was formerly known as Mindtree Consulting Limited and changed its name to Mindtree Limited in March 2008. Mindtree Limited was founded in 1999 and is headquartered in Bengaluru, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/18 12:45 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.