NSEI:MINDTREE

Stock Analysis Report

Executive Summary

Mindtree Limited provides digital transformation and technology services in India, the United States, Canada, Continental Europe, the United Kingdom, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with reasonable 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: MINDTREE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

MINDTREE

-2.5%

IN IT

-0.6%

IN Market


1 Year Return

-19.4%

MINDTREE

6.6%

IN IT

5.0%

IN Market

Return vs Industry: MINDTREE underperformed the Indian IT industry which returned 6.6% over the past year.

Return vs Market: MINDTREE underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

MINDTREEIndustryMarket
7 Day-3.2%-2.5%-0.6%
30 Day-6.6%1.5%5.9%
90 Day-3.7%-2.9%8.2%
1 Year-16.3%-19.4%9.6%6.6%7.0%5.0%
3 Year67.5%55.9%82.6%71.8%36.1%29.2%
5 Year29.3%16.5%60.9%45.9%38.6%25.8%

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?

18.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MINDTREE (₹682.55) is trading above our estimate of fair value (₹451.33)

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


Price To Earnings Ratio

PE vs Industry: MINDTREE is poor value based on its PE Ratio (18.2x) compared to the IT industry average (10.7x).

PE vs Market: MINDTREE is poor value based on its PE Ratio (18.2x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: MINDTREE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MINDTREE is overvalued based on its PB Ratio (3.7x) compared to the IN IT industry average (1x).


Next Steps

Future Growth

How is Mindtree forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MINDTREE's forecast earnings growth (21.3% per year) is above the savings rate (7.6%).

Earnings vs Market: MINDTREE's earnings (21.3% per year) are forecast to grow faster than the Indian market (19% per year).

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

Revenue vs Market: MINDTREE's revenue (11% per year) is forecast to grow slower than the Indian market (11.2% per year).

High Growth Revenue: MINDTREE'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: MINDTREE's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

How has Mindtree performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MINDTREE has high quality earnings.

Growing Profit Margin: MINDTREE's current net profit margins (8.4%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: MINDTREE's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: MINDTREE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MINDTREE had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the IT industry average (10.3%).


Return on Equity

High ROE: MINDTREE's Return on Equity (20.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mindtree's financial position?


Financial Position Analysis

Short Term Liabilities: MINDTREE's short term assets (₹25.2B) exceeds its short term liabilities (₹9.2B)

Long Term Liabilities: MINDTREE's short term assets (25.2B) exceeds its long term liabilities (5.2B)


Debt to Equity History and Analysis

Debt Level: MINDTREE's debt to equity ratio (0.04%) is considered satisfactory

Reducing Debt: MINDTREE's debt to equity ratio has reduced from 0.3% to 0.04% over the past 5 years.

Debt Coverage: MINDTREE's debt is well covered by operating cash flow (67200%).

Interest Coverage: MINDTREE's interest payments on its debt are well covered by EBIT (90.1x coverage).


Balance Sheet

Inventory Level: MINDTREE has a high level of physical assets or inventory.

Debt Coverage by Assets: MINDTREE's debt is covered by short term assets (assets are 2096.3x debt).


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: MINDTREE's dividend (2.34%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: MINDTREE's dividend (2.34%) is low compared to the top 25% of dividend payers in the Indian market (2.36%).


Stability and Growth of Payments

Stable Dividend: MINDTREE's dividend payments have been volatile in the past 10 years.

Growing Dividend: MINDTREE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.6%), MINDTREE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MINDTREE's dividends in 3 years are forecast to be well covered by earnings (41.8% 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?

3.0yrs

Average management tenure


CEO

Mindtree has no CEO, or we have no data on them.


Management Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: MINDTREE's management team is considered experienced (3 years average tenure).


Board Age and Tenure

0.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MINDTREE's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell₹8,916,53531 Oct 19
Lso Investments Pvt Ltd
EntityCompany
Shares12,454
Max Price₹715.96
Sell₹4,523,04029 Oct 19
Lso Investments Pvt Ltd
EntityCompany
Shares6,282
Max Price₹720.00
Sell₹86,692,23725 Oct 19
Lso Investments Pvt Ltd
EntityCompany
Shares120,000
Max Price₹722.44
Sell₹2,832,44026 Sep 19
Madhusudhan K M
EntityIndividual
Shares4,000
Max Price₹708.11
Sell₹7,200,00025 Sep 19
Rostow Ravanan
EntityIndividual
Shares10,000
Max Price₹720.00
Sell₹1,501,92025 Sep 19
Madhusudhan K M
EntityIndividual
Shares2,000
Max Price₹750.96
Sell₹14,539,84924 Sep 19
Lso Investments Pvt Ltd
EntityCompany
Shares20,000
Max Price₹726.99
Sell₹7,150,00023 Sep 19
Rostow Ravanan
EntityIndividual
Shares10,000
Max Price₹715.00
Sell₹13,999,99819 Sep 19
Rostow Ravanan
EntityIndividual
Shares20,000
Max Price₹700.00
Sell₹7,237,64805 Sep 19
Anil Rao
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares10,635
Max Price₹680.55
Buy₹1,217,75329 Aug 19
Nandashree Natarajan
EntityIndividual
Shares1,775
Max Price₹693.44
Sell₹1,501,92013 Aug 19
Madhusudhan K M
EntityIndividual
Shares2,000
Max Price₹750.96
Sell₹41,420,03826 Jul 19
Lso Investments Pvt Ltd
EntityCompany
Shares60,000
Max Price₹690.33
Buy₹799,761,81504 Jul 19
Larsen & Toubro Limited
EntityCompany
Shares871,000
Max Price₹919.15
Sell₹8,220,23904 Jul 19
Subramanyam Putrevu
EntityIndividual
Shares8,388
Max Price₹980.00
Buy₹50,298,859,06703 Jul 19
Larsen & Toubro Limited
EntityCompany
Shares51,325,371
Max Price₹980.00
Sell₹4,112,34526 Jun 19
Erwan Carpentier
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares4,255
Max Price₹966.47
Sell₹38,785,59825 Jun 19
Ramesh Gopalakrishnan
EntityIndividual
Shares40,000
Max Price₹969.64
Sell₹10,200,01121 Jun 19
Guita Yazdi
EntityIndividual
Shares10,635
Max Price₹959.10
Sell₹3,385,76618 Jun 19
Anindya Maitra
EntityIndividual
Shares3,500
Max Price₹967.36
Buy₹827,21207 Jun 19
Larsen & Toubro Limited
EntityCompany
Shares855
Max Price₹967.50
Buy₹24,275,75006 Jun 19
Larsen & Toubro Limited
EntityCompany
Shares25,000
Max Price₹971.03
Sell₹4,899,50031 May 19
Ramesh Gopalakrishnan
EntityIndividual
Shares5,000
Max Price₹979.90
Buy₹26,434,52130 May 19
Larsen & Toubro Limited
EntityCompany
Shares26,974
Max Price₹980.00
Buy₹95,858,69729 May 19
Larsen & Toubro Limited
EntityCompany
Shares97,815
Max Price₹980.00
Sell₹3,531,22128 May 19
Anil Rao
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares3,602
Max Price₹980.35
Buy₹349,596,10528 May 19
Larsen & Toubro Limited
EntityCompany
Shares356,738
Max Price₹979.98
Buy₹225,516,18028 May 19
Larsen & Toubro Limited
EntityCompany
Shares230,135
Max Price₹979.93
Buy₹2,449,626,58224 May 19
Larsen & Toubro Limited
EntityCompany
Shares2,499,619
Max Price₹980.00
Buy₹70,396,14521 May 19
Larsen & Toubro Limited
EntityCompany
Shares71,835
Max Price₹979.97
Buy₹72,473,20320 May 19
Larsen & Toubro Limited
EntityCompany
Shares73,953
Max Price₹979.99
Buy₹13,170,93117 May 19
Larsen & Toubro Limited
EntityCompany
Shares13,440
Max Price₹979.98
Buy₹868,540,84816 May 19
Larsen & Toubro Limited
EntityCompany
Shares886,438
Max Price₹979.81
Buy₹1,135,29614 May 19
Larsen & Toubro Limited
EntityCompany
Shares1,168
Max Price₹972.00
Sell₹8,899,60001 Feb 19
P. Venkataraghava
EntityIndividual
Shares10,000
Max Price₹889.96
Sell₹4,139,20021 Dec 18
Rajesh Shankaranarayana
EntityIndividual
Shares5,000
Max Price₹827.84

Ownership Breakdown

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


Management Team

  • Balaji Krishnan (52yo)

    Senior Vice President

    • Tenure: 0yrs
  • K. Madhusudhan (51yo)

    Chief Technology Officer

    • Tenure: 5.1yrs
  • Srinivasa Kottamasu (51yo)

    Senior Vice President

    • Tenure: 0yrs
  • Suresh Prakash (52yo)

    Senior Vice President

    • Tenure: 0yrs
  • Erwan Carpentier (46yo)

    Senior VP & General Counsel

    • Tenure: 0yrs
  • Vedavalli Sridharan

    Company Secretary

    • Tenure: 4.4yrs
    • Compensation: ₹4.24m
  • Pradip Menon (51yo)

    Senior VP & CFO and Compliance Officer

    • Tenure: 1.2yrs
    • Compensation: ₹23.33m
  • Manas Chakraborty (50yo)

    Senior VP and Head of Enterprise Service Lines

    • Tenure: 1.5yrs
  • Pramod Panda (45yo)

    Senior Vice President

    • Tenure: 0yrs
  • Anil Rao (50yo)

    Senior Vice President

    • Tenure: 0yrs

Board Members

  • Milind Sarwate (60yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: ₹3.00m
  • Akshaya Bhargava (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: ₹6.76m
  • Anilkumar Naik (77yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
  • Apurva Purohit (53yo)

    Lead Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹3.00m
  • Bijou Kurien (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹2.13m
  • Mysore Prasanna (72yo)

    Independent Director

    • Tenure: 0.3yrs
  • Ramamurthi Raman (61yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • SNS Subrahmanyan (59yo)

    Non-Executive Vice Chairman

    • Tenure: 0.3yrs
  • Jayant Patil (65yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Debashis Chatterjee (53yo)

    CEO, MD & Director

    • Tenure: 0.3yrs

Company Information

Mindtree Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mindtree Limited
  • Ticker: MINDTREE
  • Exchange: NSEI
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹113.489b
  • Shares outstanding: 164.57m
  • 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 Analysis2019/11/13 12:50
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.