Mindteck (India) Ltd; Dark Horse Stock of the Day!

Shares of Mindteck (India) Ltd experienced a sharp rise today, hitting the upper circuit. It began the day at Rs 139.50 and opened flat compared to the previous day’s closing price of Rs 138.60. Within just thirty minutes of the early morning trading session, the stock surged by 11% with good volume, ultimately reaching the upper circuit levels, and eventually, the stock closed at Rs 166.30, up by 20% on the BSE.

The stock’s 52-week highs and lows stand at Rs 166.30 and Rs 96.30, respectively. With a market capitalization of just Rs 420 Crore, the stock has displayed positive performance in recent times, delivering a 34% return over the last month and an impressive 66% return over the past year.

The stock had been in a consolidation phase for the past year, encountering difficulties in surpassing the Rs 150 mark. However, today proved to be a significant breakthrough as the stock not only managed to cross this level but also closed above it with an increased trading volume compared to the previous days.

Promoter holding in the company stands at 65.04%, while FIIs hold a mere 0.20%. DIIs do not have any stake in the company and the Public investors hold 33.11%.

In FY23, Mindteck India Ltd’s revenue surged by 12.70%, climbing from Rs 299 Crore to Rs 337 Crore. The company’s operating profit reached Rs 27 Crore, with an operating profit margin of 8%. Over the past three years, the company has consistently achieved double-digit operating profits and maintained it above Rs 20 Crore.

The net profit of the company amounted to Rs 21 Crore. In terms of debt, the balance sheet shows a debt of Rs 6 Crore in FY23, resulting in a debt-to-equity ratio of 0.03 times. The company’s Return on Capital Employed (ROCE) stands at 14.2%, while the Return on Equity (ROE) is at 11.4%.

Mindteck (India) Ltd provides engineering and information technology. The company offers product engineering, application software, testing and enterprise business services, electronic design, wireless and Internet of Things (IoT), big data, and analytics. They offer enterprise applications and product lifecycle management, embedded systems and applications, mobility and cloud, and IT security services. Mindteck serves a wide range of industries, including healthcare and medical devices, life sciences and chemical analysis, electronics, semiconductors, data storage, and government. It has a business presence in the US, Canada, Europe, the Middle East, Singapore, Asia-Pacific, and India. Mindteck is headquartered in Bangalore, Karnataka, India. 

At present, the IT sector is still in a phase of consolidation and has yet to show significant performance. However, once the consolidation phase is broken, it is anticipated that IT stocks will start performing well. Mindteck, being an IT company, has the potential to actively participate in this sector’s rally. Therefore, investors must keep this stock on their radar.