BSE:532819

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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 outstanding track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

532819

-0.06%

IN IT

1.2%

IN Market


1 Year Return

62.3%

532819

13.5%

IN IT

4.3%

IN Market

Return vs Industry: 532819 exceeded the Indian IT industry which returned 13.5% over the past year.

Return vs Market: 532819 exceeded the Indian Market which returned 4.3% over the past year.


Shareholder returns

532819IndustryMarket
7 Day-1.4%-0.06%1.2%
30 Day16.4%7.3%7.1%
90 Day33.6%31.7%23.6%
1 Year64.7%62.3%16.7%13.5%6.3%4.3%
3 Year161.2%143.9%82.8%72.7%4.2%-0.7%
5 Year77.9%60.6%74.3%58.1%34.4%24.4%

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

Valuation

Is Mindtree undervalued compared to its fair value and its price relative to the market?

24.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532819 (₹1136) is trading above our estimate of fair value (₹413.68)

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 (24.9x) compared to the IN IT industry average (13.7x).

PE vs Market: 532819 is poor value based on its PE Ratio (24.9x) compared to the Indian market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: 532819 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 532819 is overvalued based on its PB Ratio (5.4x) compared to the IN IT industry average (1.2x).


Next Steps

Future Growth

How is Mindtree forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532819's forecast earnings growth (13.4% per year) is above the savings rate (7.2%).

Earnings vs Market: 532819's earnings (13.4% per year) are forecast to grow slower than the Indian market (24.3% per year).

High Growth Earnings: 532819's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532819's revenue (9.6% per year) is forecast to grow slower than the Indian market (10.6% per year).

High Growth Revenue: 532819's revenue (9.6% 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 (23.6%)


Next Steps

Past Performance

How has Mindtree performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532819 has high quality earnings.

Growing Profit Margin: 532819's current net profit margins (9.6%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: 532819's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: 532819's earnings growth over the past year (9.2%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: 532819 earnings growth over the past year (9.2%) exceeded the IT industry 0.3%.


Return on Equity

High ROE: 532819's Return on Equity (21.7%) is considered high.


Next Steps

Financial Health

How is Mindtree's financial position?


Financial Position Analysis

Short Term Liabilities: 532819's short term assets (₹36.3B) exceed its short term liabilities (₹13.7B).

Long Term Liabilities: 532819's short term assets (₹36.3B) exceed its long term liabilities (₹6.1B).


Debt to Equity History and Analysis

Debt Level: 532819 is debt free.

Reducing Debt: 532819 has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: 532819 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 532819 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Mindtree current dividend yield, its reliability and sustainability?

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532819's dividend (1.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 532819's dividend (1.14%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


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 (21.9%), 532819's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532819's dividends in 3 years are forecast to be well covered by earnings (37% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average board tenure


CEO

Debashis Chatterjee (54 yo)

1

Tenure

₹79,455,800

Compensation

Mr. Debashis Chatterjee serves as Managing Director, Chief Executive Officer and Director of Mindtree Limited since August 2, 2019. Mr. Chatterjee served as an Executive Vice President and President of Glo ...


CEO Compensation Analysis

Compensation vs Market: Debashis's total compensation ($USD1.06M) is above average for companies of similar size in the Indian market ($USD764.01K).

Compensation vs Earnings: Insufficient data to compare Debashis's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Debashis Chatterjee
CEO, MD & Director1yr₹79.46mno data
Akshaya Bhargava
Independent Director3.67yrs₹5.61mno data
Anilkumar Naik
Non-Executive Chairman1.08yrs₹4.23mno data
Apurva Purohit
Lead Independent Director3.33yrs₹2.40mno data
Bijou Kurien
Independent Director2.08yrs₹2.40mno data
Mysore Prasanna
Independent Director1.08yrs₹1.70mno data
Ramamurthi Raman
Non-Executive Director1.08yrsno datano data
Sekharipuram Subrahmanyan
Non-Executive Vice Chairman1yrno datano data
Jayant Patil
Non-Executive Director1.08yrsno datano data
Deepa Wadhwa
Independent Director1.08yrs₹1.70mno data
Chandrasekaran Ramakrishnan
Additional Independent Director0.083yrno datano data

1.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 532819's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532819 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹187.061b
  • Shares outstanding: 164.67m
  • Website: https://www.mindtree.com

Number of Employees


Location

  • Mindtree Limited
  • Global Village
  • RVCE Post
  • Bengaluru
  • Karnataka
  • 560059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532819BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2007
MINDTREENSEI (National Stock Exchange of India)YesEquity SharesININRMar 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: Reta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:16
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.