Rs 1,248 to Rs 4,732: This IT stock zoomed over 250% in one year; hit all-time high today

Sensex crossed the historic level of 60,000 mark today, and the broader NSE Nifty 50 index hit a record high of 17,947.65. Investor wealth rose to Rs 263.13 lakh crore against the previous close of Rs 261.74 lakh crore.
 
Amid the unstoppable rally, shares of Mindtree Limited India surged 4 per cent to hit an all-time high of Rs 4,732.4 on BSE. The stock has been gaining for the last four trading sessions and has risen 12 per cent during the same period.
 
The IT services firm said it is expanding in Europe and Asia-Pacific and has made several key executive appointments to further accelerate growth in the two markets. The company has appointed Klaus Seifert as Head of Strategy for Europe and Chief Business Officer (CBO) for Germany, Austria, and Switzerland (DACH), Erik Julius Larsen as CBO for Nordics and Benelux, and Dominic Del Giudice as CBO for Asia-Pacific, a statement said.
 
The large-cap stock has delivered more than 250 per cent return to its shareholders in the last 12 months. In the last one year, Mindtree Limited share price jumped from Rs 1,248.6 to Rs 4,732.40 mark - logging around 279 per cent return in this period.
 
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 18.94 lakh today.
 
With a market capitalisation of more than Rs 76,000 crore, the shares stand higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
 
"The company has won robust deal wins during FY21 which stood highest in the history at $1,382 million. It also has 4 key verticals like BFSI, Hitech & Media, Retail CPG & manufacturing, and travel & hospitality. Pandemic has been beneficial for all the IT players as it has led to consumers preferring digital transactions and companies focusing more on digital channels triggering a lot of investment," Jitesh Ranawat, Head Institutional Sales at Marwadi Shares and Finance Ltd, told BusinessToday.in.
 
"This trend has been growth supportive for all IT players resulting in higher valuations. The company currently trades at 35x FY 24E which is way above its historical averages. It has identified and come up with its 4x4x4 strategy wherein it will be investing in newer technologies and skillsets to develop expertise in next-generation services," he noted.
 
"We would recommend adding the stock on declines as it trades at the higher end of the valuation," he added.
 
According to MarketsMojo, the company has declared positive results for the last five consecutive quarters. It has strong long-term fundamental strength with an average Return on Equity (ROE) of 21.06% and has a low Debt to Equity ratio (avg) at -0.36 times.
 
The technical trend has improved from Mildly Bullish on March 9, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, DOW and OBV. The company has high institutional holdings at 25.65% and their stake has increased by 0.87% over the previous quarter.
 
Mindtree reported a net profit of Rs 343.40 crore for the quarter ended June 2021 compared to a net profit of Rs 213 in the year-ago period. Revenue from operations grew 20 per cent to Rs 2,291.70 crore in the June-ended quarter against Rs 1,908.80 crore a year ago. The EPS has increased to Rs 20.85 in June 2021 from Rs 12.94 in June 2020.