Mindtree Ltd.’s stock jumped to a record high as analysts remained bullish on the information technology company, citing improved revenue and record deal wins in the quarter ended June.
Its revenue in dollar terms rose 7.7% sequentially to $3,210.5 million in the April-June period, while net profit increased 7.5% to $46.5 million, according to its exchange filing.
The strong Q1 numbers demonstrated the resilience of the business in a challenging environment, according to Debashis Chatterjee, chief executive officer and managing director at Mindtree. The record high order book of $504 million, he said, is indicative of the focused execution of the company’s strategy and client centricity.
The analysts, however, cited interest rate hikes by the U.S. Federal Reserve, cost headwinds and a rise in travel and discretionary expenses, among others, as risks for the IT company.
Of the 39 analysts tracking the company, 16 recommend a ‘buy’, 13 suggest a ‘hold’ and 10 have a ‘sell’ rating, according to Bloomberg data. The average of the 12-month consensus price targets implies a downside of 10.9%.
Shares of Mindtree rose as much as 9.3% to a record high of Rs 2,728 apiece, before paring gains.