Share of L&T group IT firm Mindtree were trading near record highs in Tuesday's early session after analysts raised the target price for the stock. The company beat earnings estimates in the December quarter.
The mid-sized software services provider posted a 66% YoY growth in its net profit to Rs. 326.5 crore for Q3 FY21 as against Rs 197 crore in a year-earlier period. On a sequential basis, the net profit was up 28.7%.
For the quarter under review, the Bengaluru-headquartered Mindtree's recorded revenue at Rs 2,023.7 crore, up 5% sequentially and 3% annually. Reversing from losses, Mindtree share price opened with a gain of 2.55% today at Rs 1,703 against the previous close of Rs 1,660.60 and later gained 5.97% to hit the day's high of Rs 1,759.7 on BSE. The stock also hit an intraday low of Rs 1,667.25. The stock has gained after 5 days of consecutive fall.
Meanwhile, IT index on BSE was up 0.75%, in line with broader indices Sensex and Nifty that rose 1.5% today, trading near record highs.
Mindtree stock is trading higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.
Mindtree stock price has fallen 4% last week. However, the stock has risen over 13% in one month. Year-to-date the stock has gained over 1%.
Market capitalisation of the IT major stood at Rs 27,569.15 crore as of today's session. The stock has touched a 52-week high of Rs 1,780 and a 52-week low of Rs 691.95. Share of the IT company with Rs 10 face value has fallen 89% in one year.
Company CEO and MD, Debashis Chatterjee said, "Our third quarter has by far been the best performing in recent years backed by broad-based revenue growth of 5% across our verticals and service lines, robust margin expansion of 350 bps, and a healthy order book of $312 million."
"We continue to capitalise on the evolving market dynamics with solutions that help enterprises navigate the new normal and grow their businesses. Thanks to the strategic focus and hard work of our Mindtree Minds, we are now well-positioned to continue delivering profitable growth," he added.