Sunday, June 21, 2009

Financial Statements Analysis of MindTree Limited.

Brief on MindTree
MindTree is a global IT Solutions Company specializing in IT Services, Product Engineering, Infrastructure Management and Technical Support (IMTS), Independent Testing and Knowledge Services that was started in 1999. (Source:

MindTree's key development centers are in Bangalore, Chennai and Pune. It has offices in over 15 locations spread around the world. MindTree crossed USD 100 million in revenues in April 2006; the fastest Indian IT company to achieve the target.

Few Strategies (listed in Annual Report),
* New service offerings
* Leveraging existing client relationships
* Targeting large clients & expansion in non-US markets
* Innovations and new technologies
* Leverage both organic and in-organic growth
* Strengthen "MindTree" brand

A long list of good initiatives to defend (or attack) the recession. This could be the 2nd major recession MindTree is facing - the first one being the dotcom burst (~2001).

MindTree's stock has been on a rise since the announcement of results. It was volatile till a few days back and has started tracking NSE/BSE index movements very closely recently.

This saturday & sunday I decided to analyze MindTree's Annual Report to know if I should invest now or wait. Here's the report: My website or docstoc or scribd

In brief

Current market price: 425
Target price: ~200
Trade Call: Sell
Investment Risk Level: High Risk
P/E: ~53
Gross margins: 32.54%
Net margins: 3.55%
ROE: 6%

For details refer the report.

Please let me know your opinion, suggestions, advices, the comments section of this post. Thank you.

PS: If you want to re-publish the report contact me :)


sumi said...

Quite extensive I will have to study more about Mindtree on my own but your post highlights a large number of points :)

Muthu Subramanian K said...

Thanks :)