Research Report – Mindtree

General Overview - Mindtree Ltd is an Indian multinational information

technology services and consulting company, headquartered in Bangalore, India. It is a
part of the Larsen & Toubro Group. Founded in 1999. The company deals in e-
commerce, mobile applications, cloud computing, digital transformation, data
analytics, Testing, enterprise application integration and enterprise resource planning,
with more than 307 active clients and 43 offices in over 18 countries.

Shareholding pattern of the company – The majority of holding of tech Mahindra

lies with promoters. Approx. 61% is owned by promoters. Rest holdings are owned by
some mutual funds, other financial institute, foreign institutes and approx. 12% is
owned by general public.

Management of the company –

o Debashis Chatterjee- Debashis Chatterjee is the CEO and Managing
Director of Mindtree. He has over 30 years of experience in the field of IT,
spanning customer relationship management, technologies &
geographies. He has earlier worked at IBM, TCS and Mahindra &
Mahindra. He holds a bachelor's degree in Mechanical Engineering from
Jadavpur University.
o Venu Lamba – Venu Lamba is the current Executive director of the
company. In his role, he is responsible for formulating Mindtree’s
strategic direction and accelerating digital initiatives for clients, with an
aim to strengthen our leadership in technology innovation. Venu holds a
bachelor’s degree in electronics engineering from the University of
Mysore, India and General Management certification from the London
Business School.
o Vinit Teredesai - Vinit Teredesai is the Chief Financial Officer of Mindtree
and is responsible for the company’s Strategic Financial Planning,
Reporting and Auditing, Treasury & Accounting etc. Prior to joining
Mindtree, Vinit was Chief Financial Officer and CIO at KPIT Technologies.
In his overall professional career of more than 26 years, Vinit has held key
leadership roles at HSBC, SunGard & Cognizant. He is a Chartered
Accountant, Cost and Works Accountant and a Certified Public
Accountant–USA. He has also completed General Management Program
from the Massachusetts Institute of Technology (MIT) – Sloan School of
Business, focusing on strategy, innovation, and technology.
SWOT Analysis –
 Strengths –
o Increasing Revenue every Quarter for the past 4 Quarters
o Increasing profits every quarter for the past 3 quarters
o Strong cash generating ability from core business - Improving Cash Flow
from operation for last 2 years
o Mindtree has garnered a wide array of patents and copyrights through
innovation and buying those rights from the creators. This can help
mindtree Mindtree in thwarting the challenges of competitors in various
industries Innovation and IT.
o Company with No Debt

 Weakness -
o Broker downgrades in price or recommendation in the past one month
o High volume, top losers
o RSI indicating price weakness

 Opportunities –
o  Increased in demand for IT solution.
o There has been a tremendous growth in Data in the recent years and big
Data has been the primary contributor of the same.
o Rapid Expansion of Economy is also giving boost to the business
operations which will further benefit all the players in the market.

 Threats –
o Economic slowdown and uncertainty in USA and Europe respectively
o Increasing presence of foreign IT player in that domain
o Stiff competition from existing players like TCS, Wipro, Tech Mahindra etc.

Competitive Analysis –
Mindtree main competitors include Tata Consultancy Services, Infosys, HCL
Technologies.

o Tata Consultancy services (TCS) - Tata Consultancy Services (TCS) is a

company operating as an IT services, consulting, and business solutions
organization. TCS has 25 times more workforce than Mindtree and has approx.
 22 times more revenue per year. Talking about financials, the net income of TCS
is 40 times more than that of Mindtree. TCS is currently leading IT service
provider in India and ranked 2nd in the world.

o Infosys - Infosys is a company that provides consulting, technology, and

outsourcing services. Infosys has over 256K workforce and has approx. a trillion
rupees revenue per year which is 14 times more than MIndtree. Infosys has
presence in 59 countries and is currently the biggest player in IT services sector
after TCS.

o HCL Technologies - HCL Technologies is a provider of software, business

process outsourcing, and information technology infrastructure services. HCL
workforce stand at approx. 168K in total. Talking about stats HCL gross revenue
is approx. 750 billion rupees which is approx. 5 times than tech Mahindra.

Conclusion and way forward for the company –

After analysing all the aspects, we can conclude that Mindtree is currently in very strong
position and is also fundamentally strong. The company is run by very efficient
management and company is doing very well. The company financial figures too are
very impressive and all the financial and working ratios are well in their ideal positions.
The company has its operations in more than 60 countries worldwide and has shown
exponential growth over the years.

Talking about the future and way forward for the company, the company vision should
be to be more competitive in the market. Currently TCS, Wipro and Infosys are way
ahead in terms of operations and market cap. Company would like to work more in
penetrating the market not only in India but globally. Company also should work on
their weakness and should take maximum advantage of the opportunities that come
along their way.