Hold MindTree, says Phani Sekhar

Hold MindTree, says Phani Sekhar of Angel Broking.

Sekhar told CNBC-TV18, "MindTree is one of the best midcap IT players as seen by its track record and management pedigree. The company showed lackluster numbers in the last one year or so mainly because of a slowdown in the macro environment as well as the Forex hits that it took which depressed its profits. But again going forward the low base of last year and the same Forex positions are helping the company post a good amount of further income as well as impressive growth rates.”

He further added, “If one extrapolates the current run rate and the topline growth equivalent to what the industry will grow at then the company is available at hardly eleven to twelve times one year forward earnings, which again is very interesting because this company has a niche in the offshore R&D market and that pie is getting increasingly offshorable which helps this company in a big way. Going forward we believe that the company will be able to maintain its operating margins because of its advantage in that space. So I will continue to hold MindTree with a 30% upside in the mind from the one year perspective.”