By Malvika Gurung
Investing.com — Shares of the mid-tier IT services provider MindTree (NS:) declined 4.92% to Rs 4,510.5 apiece at 10:24 am on Friday, after tanking almost 6% earlier in the session, despite posting positive quarterly results for Q3 on Thursday.
Investors sold the stock due to a slump in the broader market in Friday’s session, with major indices trading 0.38% lower and the 30-scrip down 0.45%, while writing this report.
The company reported a 34% jump in net profit to Rs 437.5 crore in Q3 FY22, compared to Rs 326 crore reported in the same quarter last year, and 9.7% on a QoQ basis, beating the Street’s estimates.
Its Earnings Before Interest and Tax also grew 12.6% to Rs 528.9 crore on a sequential basis, while the EBIT margin came in at 19.2%, compared to 18.2% in the Sept-quarter, more than investors’ expectations.
Moreover, the company is expected to continue growing with good momentum, given its robust demand, aggressive customer mining, and end-to-end digital transformation capabilities.
Brokerages have mixed views on the IT stock, as Citi (NYSE:) maintained a ‘Sell’ call post the company’s Q3 result, on a lower-than-expected revenue, while closely watching out the trends in the hospitality vertical due to the prevalent Omicron cases.
It has set a target price of Rs 3,650 on the stock, a downside of 19.4%.
On the other hand, PhillipCapital has a Buy call on the stock with a TP of Rs 5,249, as it believes Mindtree to be going strong.