Mindtree Share Price: Stock Analysis, History, and Forecast

Finally, no more speculations. It’s confirmed! Mindtree and Larsen & Toubro are merging to become India’s fifth-largest IT company. While the news has sent a wave of excitement in  many circles, it raises a legitimate question: what would happen to Mindtree’s stock? Will it create any impact on Mindtree share price?

As per sources, L&T Infotech (LTI) will give away 73 shares for every 100 shares of Mindtree in an all-share deal. Moreover, L&T will keep 68.73% of L&T Infotech. The merger is supposed to help with mega deal wins with other IT giants.

While speaking on the merger, AM Naik, Chairman, L&T Group, said  the proposed merger would help create strength for these companies to unlock synergies through talent pool, cross-vertical expertise and scale. This will help them evolve as a partner of choice for large-scale tech transformations and build a unique employee value proposition.

Considering all these, we can say that the merger may be  fruitful for Mindtree, which will ultimately affect its stock price. In the last three years, the company has performed exceptionally well. The stock price went up to ₹ 5000 from ₹ 800.

To know whether the stock would be a good investment or not, scour the blog thoroughly; analyse the company’s performance and its  management, and then decide whether you should invest or not?

Mindtree Share Price History

Mindtree share price today, as of 5 May 2022, at 16:08 hours, is ₹ 3,510.45, which is higher than the previous day’s close, which was ₹ 3,469.05 on the National Stock Exchange.

Before we proceed any further, let us have a quick glance through the Mindtree stock prices for the last six months:

If you study the table thoroughly, you will know that the stock performed extraordinarily in 2021. It hit the mark of ₹ 5,060.00, which is an all-time high. However, on the same day, the stock closed at ₹ 4,839.40. Until December end, there were multiple price variations. But the year ended at more than ₹ 4700, which was good.

After Mid-January 2022, the stock took a dip, and until Mid-March, the price range fluctuated between ₹ 3500 to ₹ 4000. One of the most possible reasons for price downfall could be the impact of the Russia-Ukraine war. Not only Mindtree but the whole stock exchange witnessed huge losses.

Image Credit: Moneycontrol.com

The above image demonstrates the stock price fluctuations of Mindtree from mid-August 2021 to 5 May 2022. As you can notice, on 14 November 2022, the stock of Mindtree traded at the highest price. However, by the end of December, the company experienced a downward trend and wrapped up with a trading price of ₹ 4780.

From January 2022 to 5 May 2022, the lowest price that the company touched was in February, March, and in May. The reasons behind such downfalls are currently not clear. There are several mixed opinions on the same. The stock is in the overvalued zone, so the price fluctuations are apparent.

Mindtree Share Price NSE

As of 5 May 2021 at 16:08 Hours, the share price of Mindtree Limited on NSE was as follows:

Mindtree Share Price BSE

As of 5 May 2021 at 16:08 Hours, the share price of Mindtree Limited on BSE was as follows:

Mindtree Company Information

Founded in 1999, Mindtree Limited is an Indian multinational IT service and consulting company. It is headquartered in Bengaluru and is a part of Larsen & Toubro. The company focuses on delivering digital transformation and technology services from ideation to execution. Globally, it helps 2000 clients beat the competition.

The organisation employs more than 23,000 employees and has an annual revenue generation of ₹ 7839.9 Crores (1.1 USD billion). It has multiple branches in India and overseas.

Mindtree deals in a diverse range of segments, namely:

•     E-commerce
•     Data Analytics
•     Mobile Applications
•     Digital Transformation
•     Testing
•     Cloud Computing
•     Enterprise resource planning
•     Enterprise application integration

As of 31 March 2019, the company had more than 307 active clients and 43 officers in over 18 countries.

Mindtree History

Mindtree was incorporated in 1999 as  Mindtree Consulting Private Limited. It was promoted by ten industry professionals who came from Cambridge Technology Partners, Lucent Technologies and Wipro.

In December 2001, the company commenced an IT outsourcing partnership with Volvo Information Technology.

In 2003, Mindtree was evaluated as a P-CMM (People Capability Maturity Model) Level 5 company, while it was considered the CMMi Level 5 company in 2004.

The company went public on 12 December 2006 and was listed on the National Stock Exchange of India and the Bombay Stock Exchange.

Mindtree brought its IPO on 9 February 2007, which was oversubscribed. On 28 September 2012, the company announced a new brand logo and identity with the slogan “Welcome to possible”.

In 2012, under the leadership of Scott Staples, co-founder and Global Head of Sales, the company established its first U.S. delivery centre (UDSC) in Gainesville, Florida.  

In March 2020, Mindtree declared the appointment of new COO (Chief Operating Officer) Dayapatra Nevatia with immediate effect.

Management of Mindtree Limited

Management is considered one of the most crucial pillars of any company. Good management can lead an organisation to success, while an ignorant one can be the cause of distress. Therefore, while forming a company, it’s essential that people with the right attitude, relevant experiences and knowledge are recruited to be a part of the management team.

Mindtree was established by ten IT professionals who had profound insight into what they were doing. Currently, the management of the company is packed with experts who are remarkably professional and knowledgeable.  The  performance of the company is evidence of the same.

Given below is the list of team members in Mindtree’s management:

Don’t miss it!

Mindtree Company Location

Mindtree Limited is headquartered in Bangalore, but it has various branches in India and overseas. Given below is the address of Mindtree headquarters.

Mindtree Headquarters Address

Mindtree Ltd.

Global village,

RVCE post-Mysore road

Bengaluru – 560 059, Karnataka, India.

Mindtree Company Performance

Mindtree generated a total income of ₹ 2,820.80 Crores—a jump of 39.06% from the last year’s same quarter. The company made a total income worth ₹ 2,148.20 Crores and reported a net profit of ₹ 473.10 Crores, excluding the tax, in the latest quarter.

At the quarter-end, i.e., on March 31 2022, the auditors of Mindtree declared a Consolidated Total Income of ₹ 2,987.30 Crores, which was up by 5.90% against the last quarter. Moreover, the company spent less than 1% of its operating revenues on interest expenses and 60.12% on employee costs in the year ending on 31 March 2022.

The organisation furnished a Return on Equity (ROE) of 30.19% in the last quarter-end, outperforming its 5-year average of 24.84%. Mindtree’s annual revenue growth of 33.41% surpassed its 3-year compounded annual growth rate of 14.9%.

As per the latest trading session, Mindtree delivered a 3-year return of 257.57% compared to Nifty 100, which gave a return of 47.59%.

The stock produced a return of 257.57% compared to Nifty IT, which furnished a 96.5% return over three years.

In a nutshell, the company is performing exceptionally well and is contemplated to keep up the rising growth in future as well.

Mindtree Stock Returns in 2020 and 2021

Glance through the table below to get an idea about company’s stock returns in 2020 and 2021:

As per the data in the table, it’s pretty apparent that the company made stunning progress from the beginning of 2020 to the end of 2021. In January, the highest closing price of the stock was ₹ 887, and the highest of the day was ₹ 919.05. The stock traded between ₹ 800 to ₹ 950 until June 2020, and it elevated beyond ₹ 1600 by the year-end.

In 2021, the stock had the greatest time ever and hit an all-time high of ₹ 5060. Most of the stocks hit their highest in 2021 due to sudden demands and better performance of stock exchanges.

So, if you invested in 2019 or at the beginning of 2020, you must  have gained extreme profit in 2021 and as of now.

Mindtree Listings and Indices

Mindtree Limited went public on 9 February 2007. The company was listed on three major stock exchanges and became a part of 28 indices. To know more about Mindtree listing information, have a look at the table below:

Part of Indices

The company is a part of 28 indices. A list of the following indices is given below:

Mindtree Listing on Stock Exchanges

Mindtree is listed on three major stock exchanges as provided below:

•     MCX Stock Exchange
•     National Stock Exchange of India Ltd.
•     Bombay Stock Exchange

Should You Invest in Mindtree Limited?

Currently, the company is virtually debt-free and has a good ROE (Return on Equity) track record of 27.78%. In the last three years, it has produced an average profit growth of 29.90%.

Moreover, Mindtree holds an effective cash conversion ratio of 93.01% and a PEG (Price/Earnings to Growth) ratio of 0.72%. With a sales growth of 31.90% and a healthy net profit of 28.02%, the company isn’t leaving any stones unturned.

In short, the company has performed exceptionally well in the last decade. According to 93% of the stock market experts, the stock is a good buy for the investors. Those who are seeking profits in the short run must avoid the stock as the share prices have been fluctuating a lot recently.

On the contrary, if you aim at extracting profits in the long haul, then Mindtree could be an ideal choice to invest in.

However, before you reach any conclusion, you should do a thorough analysis of the company, such as its technical and fundamental analysis. Once you find that the company has a better prospect and that it has growth potential in the future, you can  think of purchasing the stock.

FAQ’s about Mindtree Share Price