NSEI:MINDTECK

Stock Analysis Report

Executive Summary

Mindteck (India) Limited provides product engineering and information technology (IT) services in the United States, India, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Mindteck (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

MINDTECK

-3.2%

IN IT

2.4%

IN Market


1 Year Return

-26.4%

MINDTECK

6.5%

IN IT

8.0%

IN Market

Return vs Industry: MINDTECK underperformed the Indian IT industry which returned 6.5% over the past year.

Return vs Market: MINDTECK underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

MINDTECKIndustryMarket
7 Day-2.1%-3.2%2.4%
30 Day-14.3%-4.8%2.5%
90 Day-14.6%-5.0%3.6%
1 Year-24.2%-26.4%9.4%6.5%10.3%8.0%
3 Year-64.0%-66.2%58.6%49.4%22.3%16.0%
5 Yearn/a62.7%47.7%42.8%29.3%

Price Volatility Vs. Market

How volatile is Mindteck (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mindteck (India) undervalued compared to its fair value and its price relative to the market?

29.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MINDTECK (₹31.05) is trading above our estimate of fair value (₹7.28)

Significantly Below Fair Value: MINDTECK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MINDTECK is poor value based on its PE Ratio (29.5x) compared to the IT industry average (11.3x).

PE vs Market: MINDTECK is poor value based on its PE Ratio (29.5x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MINDTECK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MINDTECK is good value based on its PB Ratio (0.4x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Mindteck (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MINDTECK's forecast earnings growth (30.2% per year) is above the savings rate (7.6%).

Earnings vs Market: MINDTECK's earnings (30.2% per year) are forecast to grow faster than the Indian market (18.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if MINDTECK's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if MINDTECK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MINDTECK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mindteck (India) performed over the past 5 years?

-43.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MINDTECK's earnings have declined by -43.7% per year over the past 5 years.

Accelerating Growth: MINDTECK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MINDTECK has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (13%).


Return on Equity

High ROE: MINDTECK's Return on Equity (1.4%) is considered low.


Return on Assets

ROA vs Industry: MINDTECK's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: MINDTECK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mindteck (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: MINDTECK's short term assets (₹1.2B) exceeds its short term liabilities (₹336.7M)

Long Term Liabilities: MINDTECK's short term assets (1.2B) exceeds its long term liabilities (101.1M)


Debt to Equity History and Analysis

Debt Level: MINDTECK is debt free.

Reducing Debt: MINDTECK had no debt 5 years ago.

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

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


Balance Sheet

Inventory Level: MINDTECK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MINDTECK's debt is covered by short term assets.


Next Steps

Dividend

What is Mindteck (India)'s current dividend yield, its reliability and sustainability?

3.17%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%0.6%markettop25%2.4%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MINDTECK's dividend (3.17%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: MINDTECK's dividend (3.17%) is in the top 25% of dividend payers in the Indian market (2.41%)

Stable Dividend: Whilst dividend payments have been stable, MINDTECK has been paying a dividend for less than 10 years.

Growing Dividend: MINDTECK has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.7%), MINDTECK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Mindteck (India)'s salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Sanjeev Kathpalia (66yo)

2.6yrs

Tenure

₹18,000,000

Compensation

Mr. Sanjeev Kathpalia has been Chief Executive Officer and Managing Director of Mindteck (India) Limited since March 1, 2017 and has been its Additional Director since February 10, 2017. 


CEO Compensation Analysis

Compensation vs. Market: Sanjeev's total compensation ($USD254.18K) is above average for companies of similar size in the Indian market ($USD33.85K).

Compensation vs Earnings: Sanjeev's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

57yo

Average Age

Experienced Management: MINDTECK's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

64yo

Average Age

Experienced Board: MINDTECK's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Surjit Lahiri (49yo)

    Vice President of Research & Development

    • Tenure: 0yrs
  • Shivarama Adiga (61yo)

    Chief Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹4.00m
  • Anand Balakrishnan

    COO & Interim CFO

    • Tenure: 0.2yrs
  • K. Pradeep

    General Manager of Human Resources

    • Tenure: 0yrs
  • Karen Stark

    Senior Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Santhosh Nagaraj

    Senior Vice President of US Sales

    • Tenure: 0yrs
  • Arup Banerjee (53yo)

    Senior Vice President of Managed Services - ROW Sales

    • Tenure: 0yrs
  • Sanjeev Kathpalia (66yo)

    CEO, MD & Director

    • Tenure: 2.6yrs
    • Compensation: ₹18.00m
  • Sebnem Aydemir

    General Manager of Istanbul Office.

    • Tenure: 1.7yrs
  • Shreerama Muniyoor

    Senior Vice President of Delivery

    • Tenure: 0yrs

Board Members

  • Meenaz Dhanani (62yo)

    Non-Executive Director

    • Tenure: 6yrs
  • Guhan Subramaniam (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: ₹200.00k
  • Satish Menon (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹400.00k
  • Subhash Dhar (53yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹300.00k
  • Yusuf Lanewala (65yo)

    Non-Executive Chairman

    • Tenure: 6yrs
    • Compensation: ₹400.00k
  • Jagdish Malkani (63yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: ₹400.00k
  • Prochie Mukherji (70yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: ₹300.00k
  • Sanjeev Kathpalia (66yo)

    CEO, MD & Director

    • Tenure: 2.6yrs
    • Compensation: ₹18.00m

Company Information

Mindteck (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mindteck (India) Limited
  • Ticker: MINDTECK
  • Exchange: NSEI
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹763.739m
  • Shares outstanding: 25.21m
  • Website: https://www.mindteck.com

Number of Employees


Location

  • Mindteck (India) Limited
  • AMR Tech Park
  • Block-1, 3rd Floor
  • Bengaluru
  • Karnataka
  • 560068
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517344BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2003
MINDTECKNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2003

Biography

Mindteck (India) Limited provides product engineering and information technology (IT) services in the United States, India, and internationally. The company offers smart grid communication services, OEM so ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:53
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.