Midcap IT stocks rally in strong second quarter. should you buy

Q2 revenue approx. came on 3,400 crore, growing 9% over the previous sequential quarter and 31.5% year on year. The total contract value or TCV crossed USD 1 billion for the first time in the first half of the financial year. Debashish Chatterjee, Chief Executive Officer and Managing Director, Mindtree said the strong performance in the second quarter of FY23 led to a solid performance in the first half of the year for the company.

“The company continues with its multi-pronged strategy of strengthening service lines, investing consistently, focusing on achieving multi-year engagement and growing top accounts that will aid in driving sales traction. We believe Mindtree has a resilient business model and has established a proven track record of strong execution capabilities,” said domestic brokerage and research firm Axis Securities, recommending the buy rating. Midcap IT Stock with a target price of 3,720 per share.

Mindtree turned in more than 5% sequential growth for the seventh quarter in a row. Management noted that the pipeline remains strong, and they remain confident of maintaining the momentum. TCV came in at $518 million; In this way its H1 TCV crossed $1 billion for the first time.

The company, which is in the process of merging its business with group company L&T Infotech, also said it fell to 24.1% in the last 12 months from 24.5% in the first quarter, but still recorded 17.7% last year. is above.

“The merger of Mindtree and LTI is progressing well, and management believes it can be completed by the end of the year. We believe their successful integration will create strong cross-selling opportunities. Overall growth and TCV were strong,” said another brokerage Edelweiss retaining the ‘buy’ tag Mindtree Share with an unchanged target price of 3,972 each.

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