Anand Rathi Research has upgraded Mindtree to 'Buy' with target price of Rs 535 in its report.

Commenting on the results, Anand Rathi Research said, ''Mindtree operating parameters-such as stabilisation in its top-10 accounts (up 1% qoq after having declined in the last two quarters) and ramp-ups in deals won in H2 FY17 (USD 524m TCV signed)-improved. Key verticals such as BFSI (25% of revenue) and Technology/Media (38% of revenue) started growing again. All service lines grew sequentially in Q4 except IP-led revenue. Management is confident of growth recovering in FY18: hiring for Q4 is 371 (net) employees, vs. a decline of 524 employees in the first nine months of FY17.''

Commenting on the investment rationale, the stock broker said, ''To factor in a stronger rupee, we lower our FY18e and FY19e by 4% each. The stock trades at a PE of 13x FY19e, reasonable as the company approaches USD 1 billion in revenue by FY20. We retain our target price at Rs 535, based on 16x FY19e, but upgrade our recommendation to a Buy. Risk: Sharp rupee appreciation.''

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