Brokerages wait and observe L&T bid for Mindtree
Prabhudas Lilladher in its report stated that although Mindtree posted strong revenue growth, the management has guided a low teens revenue guidance for the fiscal year 2020
- Apr 18, 2019,
- Updated Apr 18, 2019 5:02 PM IST
IT services firm Mindtree reported strong revenues for the quarter ended March 2019 - revenues grew nearly 16 per cent over the year-ago quarter to $262 million. The company also crossed $1 billion in annual revenues. Brokerages, nevertheless, have gone cautious and are watching the L&T bid for the company closely.
Motilal Oswal said one of the key risk factors is uncertainty on client front with respect to recent events. Reliance Securities, in a note, said, "Good business momentum, traction in key verticals and healthy growth outlook are the positive takeaways from the company's fourth-quarter results." The note further added, "Nonetheless, given the current bid for majority stake by L&T, we would wait and observe further developments in this regard. Important dates - May 10, last day for the Committee of Independent Directors to give their recommendations to shareholders on the open offer, and May 14-27, the period of L&T's open offer. We keep the stock 'Under Review' till we see further clarity, mainly on current management staying on at Mindtree under a likely new owner."
IT services firm Mindtree reported strong revenues for the quarter ended March 2019 - revenues grew nearly 16 per cent over the year-ago quarter to $262 million. The company also crossed $1 billion in annual revenues. Brokerages, nevertheless, have gone cautious and are watching the L&T bid for the company closely.
Motilal Oswal said one of the key risk factors is uncertainty on client front with respect to recent events. Reliance Securities, in a note, said, "Good business momentum, traction in key verticals and healthy growth outlook are the positive takeaways from the company's fourth-quarter results." The note further added, "Nonetheless, given the current bid for majority stake by L&T, we would wait and observe further developments in this regard. Important dates - May 10, last day for the Committee of Independent Directors to give their recommendations to shareholders on the open offer, and May 14-27, the period of L&T's open offer. We keep the stock 'Under Review' till we see further clarity, mainly on current management staying on at Mindtree under a likely new owner."