MindTree hits 29-month high, stock soars 8%
MindTree has jumped 8.3% to Rs 668, its highest price since January 2010, on the back of huge volumes. A combined 3,75,856 shares have already changed hands in the early noon deals, as against an average of less than 3,00,000 shares traded daily in the past two weeks.
Mid-sized international IT stock is outperforming the market. It has advanced 10%, compared to 1.6% rise in the benchmark Sensex, since V G Siddhartha, Coffee Day Group’s chairman acquired additional 3.84% stake in the company on June 18.
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Analysts at Prabhudas Lilladher are bullish on the stock and have put a “Buy" rating with a target of Rs 700.
“MindTree strategy to focus on existing clients, and increase their wallet share is paying good dividends. The company expects to deliver growth of 14% plus (in USD terms) lead by stronger growth in IT services and high single-digit growth in PES," the report states.