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Prabhudas Lilladher
Target: ₹2,170
CMP: ₹1,969.10
We hosted top management of Mindtree, Venu Lambu (Executive Director and President, Global Markets), Vinit Teredesai (CFO) and Sriram (Head of Service Line Sales, North America), for conference call on Mindtree’s Investor Connect on Cloud Capability and Differentiator.
IT services deal sizes are only getting larger, as cloud has become part of every aspect of digital transformation. Management stated that cloud led large deal momentum will continue for next 3-4 years because client’s business models will keep evolving as they realize the benefits of cloud native applications.
Mindtree’s sharp focus on building end-to-end skills in each of the three hyper scalars, ability to collaborate efficiently across all 4 service lines to execute large transformation deals and being born digital with abundant new age app developer resource differentiates them from competition. Since Mindtree has relatively less portion of traditional projects, de-growth in demand and margin pressure in these projects is relatively low for them as compared to peers.
We maintained Buy with a revised target price of ₹2,170 (earlier: ₹1,940).
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