For Q2FY19, Mindtree posted a good set of numbers with net profit coming in at Rs.206 crore, up 30% (QoQ) on a 7% rise in revenue at Rs.1755 crore.

The company’s operating profit was up 22% at Rs.229 crore while margins grew from 11.5% to 13.1%.

The stock is the top loser on the BSE despite the good numbers as foreign brokerage house, Citi has downgraded the stock from “buy” to “neutral” and cut the target price to Rs.1090.

Motilal Oswal said that the numbers had missed its estimates and it went on to cut the target price from Rs.1260 to Rs.1125 though it maintained the buy rating.

Both the brokerages said the stock was over-valued and the disconcerting aspect is that the management statement for the future seems to have turned from upbeat to cautious, mainly with respect to customer sentiment.

The stock price has today slumped over 17.5% to Rs.806 and continues to remain very firmly in the red.