MindTree Consulting No Upside – JP Morgan

JP Morgan in a research note released just a while ago has initiated coverage on MindTree Consulting with NEUTRAL rating with no potential upside for the next 6 months.
Mindtree’s fundamentals are good but with 84% post-IPO appreciation their is no room for more till Dec-07.

JP Morgan expects the share price to trade in a narrow range over the next 9-12 months as earnings catch up with the sharp share price appreciation and the market starts to focus on earnings growth during FY08-FY09 and beyond. They advise investors to enter on declines below Rs630.

JP Morgan expects Mindtree consulting to report sales of Rs 78o crore for FY08 and Rs 1060 crore for FY09 and an EPS of Rs 30.4 and Rs 42.7 respectively. With Indian Rupee under pressure, one needs to take a cautious outlook about Indian IT companies. Mindtree Consulting is one of the scrips in IPO scam where brokers would manipulate the stock post listing.