Dolat Capital Market recommended Reduce rating on Mindtree with a target price of Rs 1450 .


The company highlighted its’ revamped strategy (4x4x4) that focuses on 4 service lines (changed based on client needs) v/s 15 horizontal based services lines earlier (the sales organization is now aligned on service lines basis. The industry group focus remains on same 4 verticals with now Healthcare also getting incubated as the businesses activities are converging for many businesses towards health-related offering post pandemic. 



We believe the new strategy of the company has started fructifying as evident from recent large-deal win announcements (won 2 deals), increased focus on annuity based deals (reduces volatility) and leadership gaps now filled up. Also, given its widened market reach and revamped service line mix we now have better comfort on growth sustainability with stable profitability but believe is fairly priced in and thus assign a Reduce rating on the stock with TP of Rs 1450, valued at 20x FY23E earnings.