Mindtree slumps down into red
Mindtree which had hit a new high on 3rd March at Rs.1501 is today amongst the top five losers on the BSE. Painted a deep hue of red, the stock is down over 4% at Rs.1406 and intra day low is at Rs.1368.
The stock has slumped into the red after giving its outlook for Q4 and like TCS, it does not look too optimistic. In dollar terms, its revenue is expected to show a decline on sequential basis due to continued depreciation of certain currencies against the dollar along with a delay in commencement of projects at two clients in retail and consumer packaged verticals. In constant currency terms, revenue growth is expected to remain flat and consequently, margins are estimated to decline.
Post this announcement, Kotak downgraded the stock from “add” to “reduce”, based on expensive valuations and fall in growth outlook.