MindTree shares gain as earnings beat estimates, HSBC upgrades

Written by Reuters | Updated: Apr 17 2014, 19:25pm hrs
Shares in MindTree Ltd surges 3.4 percent after the company on Wednesday said its January-March net profit rose 24 percent to 982 million rupees ($16.3 million).

The company's board also approved a 1-to-1 bonus issuance and a special dividend of 5 rupees a share.

HSBC upgrades the stock to "overweight" and raises target to 1,650 rupees from 1,600 rupees, citing the "strong" quarterly earnings and expressing confident MindTree can post better revenue growth than the NASSCOM industry guidance for the fiscal 2014-15.

"We believe, Mindtree is one of the best mid-cap IT companies in India and has the capability to grow in-line, if not better than the industry average," HSBC said in a note on Thursday.