Mindteck (India) Limited (MINDTECK) AI Stock Analysis

• Market Cap: ₹7.13B
• Dividend Yield: 0.5%
• Average Volume (3M): 18.73K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 2.01
• Revenue Growth: 0.23%
• EPS Growth: 10.64%
• Country: IN
• Employees: 760
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.37
• Shares Outstanding: 31,954,222
• 10 Day Avg. Volume: 45,077
• 30 Day Avg. Volume: 18,730
• PEG Ratio: 7.15
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 24.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ₹274.00 ▲(23.81% Upside)

The score is led by strong financial performance (improving margins, consistent growth, solid cash generation, and conservative leverage). Technicals also support the rating with the stock trading above major moving averages and positive momentum, though indicators suggest it is somewhat extended. Valuation is moderate with a low dividend yield, which tempers the overall score.

Positive Factors

Consistent Revenue Growth

Sustained ~23% revenue growth indicates durable market demand and successful client engagement across services. Over 2-6 months this supports expanding account footprints, predictable backlog conversions, and provides a base to scale headcount and invest in higher-margin digital offerings.

Improving Margins and Profitability

Steady improvement in gross, net, EBIT and EBITDA margins reflects better pricing, cost controls, and operational efficiency. Margin expansion is structural as it enhances cash flow conversion, funds reinvestment in capabilities, and makes profitability less dependent on volatile project volumes.

Strong Cash Generation & Conservative Leverage

Robust operating cash flow and healthy free cash flow conversion combined with conservative leverage create financial flexibility for hiring, R&D, or M&A. This durable strength reduces refinancing risk and supports investment in long-term initiatives without straining the balance sheet.

Negative Factors

Asset Utilization Needs Improvement

Suboptimal asset utilization constrains return on assets and capital efficiency. Persistently lower utilization can limit margin improvements and free cash flow upside, forcing either higher fixed-cost absorption or slower revenue scaling unless operational productivity is raised.

Project-Based Revenue Mix Causes Variability

A revenue mix heavily dependent on project and T&M work creates durable exposure to timing and renewal risk, and fixed-price projects can compress margins if scope changes. This structure requires sustained sales pipeline strength and contract management to stabilize long-term cash flows.

High Market Sensitivity (Beta)

A beta ~2.0 indicates elevated sensitivity to market swings and economic cycles. For a services firm, this implies earnings and demand can be more volatile across downturns, complicating workforce planning and investment pacing and increasing the firm's exposure to macro risks.

Mindteck (India) Limited Business Overview & Revenue Model

Company Description

Mindteck (India) Limited provides engineering and information technology (IT services in the United States, India, and internationally. The company offers cybersecurity, product development, software applications, Internet of Things (IoT) solution deployment and commissioning, and IoT enablement consulting services; embedded design, embedded verification and validation services, and system solutions; product lifecycle management consulting, advisory, system implementation and administration, system validation/testing, program management, and system integration/data migration services. It also provides mobile strategy consulting, user experience, design and development, and mobility testing services; hybrid cloud appliance, interoperable cloud storage, and business data analytics services; business intelligence, information/data management, big data services, advanced analytics, and analytics on unstructured data; and IT security services. In addition, it offers system and integration, specialized, software product, cloud based testing services, test strategy, automation, and infrastructure services; product engineering, re-engineering, and sustenance services; data center transformation and IT infrastructure management services; custom application development, application maintenance and management, legacy modernization, and performance engineering and enhancement services; application and enterprise systems integration, business process management, packaged application, SAP solutions, and service oriented architecture services; and smart city solutions. Further, the company sources and deploys IT talent. It serves Fortune 1000 companies, start-ups, universities, and government entities. The company was formerly known as Hinditron Informatics Limited and changed its name to Mindteck (India) Limited in September 1999. The company was incorporated in 1991 and is headquartered in Bengaluru, India. Mindteck (India) Limited is a subsidiary of Embtech Holdings Limited.

How the Company Makes Money

Mindteck generates revenue primarily through its consulting and IT services, which include software development and maintenance, system integration, and IT support. The company's revenue model is based on project-based contracts, time-and-material engagements, and fixed-price contracts with clients. Key revenue streams include long-term contracts with established clients in various industries, as well as strategic partnerships with technology providers that enhance its service offerings. Additionally, Mindteck's focus on emerging technologies, such as IoT and digital transformation, positions it to capture new business opportunities and expand its market reach, thereby contributing to its earnings.

Mindteck (India) Limited Financial Statement Overview

Summary

Mindteck (India) Limited exhibits a robust financial standing with strong revenue growth, improved profit margins, and effective cash flow management. The company's conservative leverage and solid equity base provide financial stability, while positive cash flows enhance its financial flexibility. Despite some areas for improvement in asset utilization, the overall financial health of the company is strong and trending positively.

Income Statement

Mindteck (India) Limited has shown strong growth in its income statement metrics. The gross profit margin has increased significantly over the years, indicating better cost management and pricing strategies. The net profit margin has improved, showing enhanced profitability. Revenue growth has been consistent, demonstrating robust business performance and market demand. The EBIT and EBITDA margins have also improved, reflecting effective operational management and cost controls.

Balance Sheet

The company's balance sheet indicates a strong equity base, with a healthy equity ratio suggesting good financial stability. The debt-to-equity ratio is low, indicating conservative leverage levels, which reduces financial risk. Return on equity has improved, showcasing effective use of shareholders' equity to generate profits. The balance sheet is solid but could benefit from further improvements in asset utilization.

Cash Flow

Mindteck's cash flow statements reveal a strong free cash flow generation and positive operating cash flows, indicating good cash management. The free cash flow to net income and operating cash flow to net income ratios are healthy, demonstrating efficient conversion of income to cash. Free cash flow growth has been positive, which enhances financial flexibility for future investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.20B	4.32B	3.86B	3.37B	2.99B	2.87B
Gross Profit	791.20M	538.70M	608.40M	524.90M	565.80M	531.20M
EBITDA	407.50M	428.00M	388.70M	315.10M	440.00M	241.50M
Net Income	310.50M	286.80M	273.10M	207.70M	333.10M	108.60M
Balance Sheet
Total Assets	0.00	3.22B	2.76B	2.43B	2.29B	2.07B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.34B	1.25B	1.02B	768.20M	775.60M
Total Debt	0.00	74.40M	22.10M	56.30M	78.60M	260.10M
Total Liabilities	-2.60B	617.80M	546.20M	520.90M	538.40M	667.80M
Stockholders Equity	2.60B	2.60B	2.21B	1.91B	1.75B	1.40B
Cash Flow
Free Cash Flow	0.00	233.20M	210.20M	113.60M	205.20M	330.60M
Operating Cash Flow	0.00	241.30M	224.80M	127.20M	216.50M	337.10M
Investing Cash Flow	0.00	-74.30M	-127.30M	-104.00M	-200.00M	-252.90M
Financing Cash Flow	0.00	14.70M	-18.50M	-147.30M	-33.60M	131.30M

Mindteck (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 221.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MINDTECK, the sentiment is Positive. The current price of 221.3 is above the 20-day moving average (MA) of 212.14, above the 50-day MA of 215.80, and above the 200-day MA of 221.17, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 34.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MINDTECK.

Mindteck (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MINDTECK	77 Outperform	₹7.13B	22.94	―	0.50%	0.23%	10.64%
INFOBEAN	75 Outperform	₹19.77B	31.25	―	0.13%	14.57%	80.44%
INNOVANA	68 Neutral	₹8.10B	16.62	―	―	25.98%	18.29%
ONWARDTEC	62 Neutral	₹7.08B	17.19	―	1.84%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MEGASOFT	60 Neutral	₹14.59B	10.58	―	―	―	―
SUBEXLTD	50 Neutral	₹5.81B	-110.48	―	―	-9.53%	96.99%

Mindteck (India) Limited Corporate Events

Mindteck Publishes Share Re-Lodgement Notice in Line with SEBI Norms

Mindteck (India) Limited has notified the stock exchanges that it has published newspaper advertisements regarding a special window for re-lodgement of shares, in line with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The advertisements, carried in the Financial Express and Hosadigantha and also hosted on the company’s website, are part of its compliance framework and are intended to inform shareholders about procedural aspects related to the re-lodgement of share certificates, reinforcing transparency and regulatory adherence for investors.