2QFY2013 Result Update | IT

October 16, 2012

MindTree
Performance highlights
(` cr) Net revenue EBITDA EBITDA margin (%) PAT 2QFY13 596 132 22.1 72 1QFY13 563 117 20.9 89 % chg (qoq) 5.9 12.4 127bp (18.8) 2QFY12 457 59 12.9 54 % chg (yoy) 30.6 124.4 925bp 32.6

ACCUMULATE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code IT 2,754 (435) 0.3 762/369 41,154 10 18,578 5,648 MINT.BO MTCL@IN

`677 `747
12 Months

Source: Company, Angel Research

MindTree reported broadly in-line but subdued set of results for 2QFY2013. The volume growth was muted at 1.0%. Operating margins fare better than expectations with the company reporting a 127bp improvement despite wage increments. MindTree has been one of the good performers on the revenue as well as margin front in the Indian IT mid-cap space, posting a 3.3% CQGR in its revenue over the past eight quarters. We maintain Accumulate rating on the stock. Quarterly highlights: For 2QFY2013, MindTree reported USD revenue of US$107.3mn, on the back of 1.0% and 0.5% qoq volume and pricing growth, respectively. The EBITDA margin improved by 127bp qoq to 22.1%, aided by 140bp qoq gain form INR depreciation and 250bp qoq benefit derived from operational efficiency. The EBITDA margin was negatively impacted by 180bp qoq due to wage hikes and 70bp qoq due to rebranding costs. The PAT came in at `72cr, down 18.8% qoq, hit because of forex loss of ~`42cr, but this loss was partially recouped by a lower tax outgo. Outlook and valuation: Because of muted growth in 1HFY2013, the management lowered its revenue growth guidance from 11-14% earlier to less than 11% now. This was already factored in our estimates keeping in mind the stretched growth rates required quarterly (FY2013E USD revenue growth ~8.5%). The management indicated that it remains in pursuit of 6-7 large deals (total contract value [TCV] of US$25mn+) and remains hopeful of closing at least one large deal in the next four weeks. We expect an 8.5% USD revenue growth for MindTree in FY2013. Overall, we expect the company to record an 8.9% and 12.8% CAGR in USD and INR revenue, respectively, over FY2012-14E. We expect the company to record a 21.2% CAGR in its EBITDA over FY2012-14E. We value the stock at 10x FY2014E EPS, ie, with a target price of `747, and maintain our Accumulate rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 19.5 9.8 23.3 47.5

Abs. (%) Sensex Mindtree

3m 8.6 5.2

1yr 8.8 78.4

3yr 7.8 18.2

Key financials (Indian GAAP, Consolidated)

Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 1,296 4.7 215 310.8 18.9 54.4 12.4 4.0 32.0 26.8 2.0 10.5

FY2011 1,509 16.4 102 (52.6) 11.8 24.9 27.2 3.6 13.1 13.3 1.7 14.6

FY2012 1,915 26.9 218 114.6 15.3 53.7 12.6 2.9 22.8 22.2 1.3 8.3

FY2013E 2,324 21.3 302 38.5 20.0 73.3 9.2 2.2 24.1 30.8 0.9 4.7

FY2014E 2,437 4.9 307 1.6 17.7 74.7 9.1 1.8 19.7 22.3 0.8 4.5

Ankita Somani
+91 22 39357800 Ext: 6819 ankita.somani@angelbroking.com

Please refer to important disclosures at the end of this report

Mindtree | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance (Indian GAAP, Consolidated)

Y/E March (` cr) Net revenue Cost of revenue Gross profit SG&A expenses EBITDA Depreciation EBIT Interest expense Other income PBT Income tax PAT Minority interest Share in profit of associates Adj. PAT EPS Gross margin (%) EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

2QFY13 596 357 239 107 132 16 116 0 (34) 82 9 72 72 17.4 40.1 22.1 19.5 12.8

1QFY13 563 344 219 101 117 16 101 0 14 115 26 89 89 21.6 38.9 20.9 18.0 15.4

% chg (qoq) 5.9 3.7 9.4 5.9 12.4 14.3

2QFY12 457 309 148 89 59 17 41 24

% chg (yoy) 30.6 15.5 62.2 20.9 124.4 (8.6) 180.3

1HFY13 1,159 701 458 209 249 32 218 1 (20)

1HFY12 870 598 272 167 105 35 69 36 106 17 89 89 22.0 31.2 12.0 8.0 9.8

% chg (yoy) 33.3 17.3 68.6 25.0 137.9 (10.2) 213.5

(29.1) (64.2) (18.8) (18.8) (19.3) 127bp 127bp 143bp (258)bp

65 11 54 54 13.5 32.3 12.9 9.1 11.3

24.7 (14.7) 32.6 32.6 29.4 782bp 925bp 1040bp 151bp

197 35 161 161 39.0 39.5 21.5 18.8 14.2

86.1 112.7 81.2 81.2 77.5 827bp 946bp 1079bp 433bp

Exhibit 2: Actual vs Angel estimates

(` cr) Net revenue EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 596 22.1 72

Estimate 587 21.0 72

% Var 1.6 108bp (0.2)

In-line performance
For 2QFY2013, MindTree reported USD revenue growth of 1.7% qoq to US$107.3mn, on the back of 1.0% qoq volume growth and 0.5% qoq pricing growth. In INR terms, revenue came in at `596cr, up 5.9% qoq.

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Mindtree | 2QFY2013 Result Update

Exhibit 3: Trend in revenue growth (qoq)

110 105 9.5 107.3 10 9 103.7 101.3 105.0 105.5 8 7 5 95 90 85 2QFY12 3QFY12 4QFY12 1QFY13 qoq growth (%) 2QFY13 Revenue (US$ mn)
Source: Company, Angel Research

(US$ mn)

4 2.3 1.3 0.4 1.7 3 2 1 0

Service vertical wise, the companys growth was led by service offerings such as Infrastructure Management Services (IMS; contributed 12.8% to revenue) and consulting (contributed 3.6% to revenue), the revenues of which grew by 16.2% and 10.9% qoq, respectively. Intellectual Property (IP) led revenue also grew by a whopping 10.2% qoq. However, revenue growth from traditional IT services stood muted. Revenues from its anchor service vertical, application development, grew by merely 1.3% qoq while revenues from engineering services and application maintenance declined by 5.7% and 0.6% qoq, respectively.

Exhibit 4: Growth trend in service verticals

Particulars Development Engineering % to revenue 25.3 15.3 21.5 3.6 2.7 1.3 17.7 12.8 % chg (qoq) 1.3 (5.7) (0.6) 10.9 (8.5) 10.2 3.4 16.2 % chg (yoy) 28.8 (19.8) (0.6) (2.3) (7.8) 5.9 3.0 39.7

Maintenance
Consulting

Package implementation
IP led revenue Independent testing Infrastructure mgmt. and tech. support (IMS)
Source: Company, Angel Research

Industry wise, revenue from total IT services (ITS) during the quarter grew by 0.9% qoq. In ITS, the major growth driver was banking, financial services and insurance (BFSI), revenue of which grew by 6.3% qoq. The revenue from manufacturing and retail grew modestly by 3.3% qoq. The revenue from the travel and transportation industry segment declined by 8.5% qoq due to closure of a large program with a top client in the industry. The management indicated that the company is again going to start a large program with that client soon. The revenues from product engineering services (PES) reported a 3.3% qoq increase; the management indicated that the PES business is expected to remain flat or post marginal growth in FY2013.

October 16, 2012

(%)

100

Mindtree | 2QFY2013 Result Update

Exhibit 5: Growth trend in industry segments

Particulars ITS Manufacturing and retail BFSI Travel, media and services Others PES
Source: Company, Angel Research

% to revenue 18.8 23.0 18.8 7.9 31.5

% chg (qoq) 3.3 6.3 (8.5) 5.7 3.3

% chg (yoy) 29.2 13.8 84.3 (49.6) (6.8)

Geography wise, the developed economies - US and Europe - emerged as the major growth areas for the company, as revenue from these regions grew by 1.7% and 3.4% qoq, respectively, during the quarter.

Exhibit 6: Growth trend in geographies

Particulars U.S. Europe India Rest of World
Source: Company, Angel Research

% to revenue 58.1 29.3 6.0 6.6

% chg (qoq) 1.7 3.4 (4.7) 0.2

% chg (yoy) 5.3 20.7 (19.6) (12.7)

Hiring and utilization

During 2QFY2013, gross addition of MindTree stood at 454; while on a net level 53 employees got added into the system, taking the total employee base to 10,883. The attrition rate (last twelve month [LTM] basis) during the quarter decreased to 16.3% in 2QFY2013 from 17.0% in 1QFY2013.

Exhibit 7: Employee metrics

Particulars Software professionals Sales and support Total employee base Gross addition Net addition Attrition LTM (%)
Source: Company, Angel Research

2QFY12 9,903 677 10,580 1,478 1,003 21.7

3QFY12 10,268 666 10,934 846 354 19.4

4QFY12 10,330 670 11,000 502 66 18.2

1QFY13 10,173 657 10,830 272 (170) 17.0

2QFY13 10,226 657 10,883 454 53 16.3

The company has given a wage hike of 8% to offshore employees and 2-3% to onsite employees from June 1 to 80% of its employee base. 18% of the companys employee base will get increments from September 1 and the rest 2% (includes most of the senior management) will get wage hikes from October 1. The management indicated that it has given ~3,000 campus offers for FY2013; the joining ratio of these is expected to be 70-75% and out of that ~2,000 employees on a gross level are yet to join the company. The company has also given offers to ~1,000 people to join in FY2014. Utilization level, including trainees, improved to 71.7% in 2QFY2013 from 68.9% in 1QFY2013.
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Mindtree | 2QFY2013 Result Update

Exhibit 8: Utilization trend

80 78 76 77.7 75.8

(%)

74 72 70 68 66 2QFY12 71.3 68.3 3QFY12

72.1

71.5 68.9

72.3 71.7

67.8 4QFY12 1QFY13 2QFY13

Utilization - incl. trainees

Source: Company, Angel Research

Utilization - excl. trainees

Margin enhances
MindTree has been consistently improving its operating margins (excluding the benefit from INR depreciation) by gaining operational efficiency from broadening its employee pyramid and rationalizing selling, general and administrative (SG&A) expenses. For 2QFY2013, MindTrees EBITDA and EBIT margins improved by 127bp and 143bp qoq to 22.1% and 19.5%, respectively. The EBITDA margin was negatively impacted by 180bp qoq due to wage hikes given to ~20% of the employee base from September 1 and 70bp qoq due to rebranding costs, but this negative impact got overshadowed by the 140bp qoq positive impact from INR depreciation against the USD and a 250bp qoq benefit derived from operational efficiency.

Exhibit 9: Margin profile

45 40 35 30 25 20 15 10 5 0 2QFY12 3QFY12 Gross margin
Source: Company, Angel Research

39.5 36.1 32.3

38.9

40.1

(%)

17.3 12.9 13.9 9.1

18.7

20.9

22.1 19.5

15.5

18.0

4QFY12 EBITDA margin

1QFY13

2QFY13

EBIT margin

The PAT came in at `72cr, down 18.8% qoq, hit because of forex loss of ~`42cr, but this loss was partially recouped by lower tax outgo (effective tax rate 11.4%). The company expects lower forex losses in 2HFY2013 as compared to 1QFY2013 even if the rupee appreciates from the current levels. Also, the tax rate for the rest of the year is expected to be in the range of 22-23%.
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Mindtree | 2QFY2013 Result Update

Client pyramid
MindTree added 11 new clients during 2QFY2013. The company saw a reduction in the US$1mn-5mn revenue bracket from 19 to 11. This is because of delays seen in ramp-up of projects and the company getting selective in terms of client addition. The revenue from top 5 and top 10 clients grew by 2.3% and 1.0% qoq, respectively.

Exhibit 10: Client metrics

Particulars Active clients New clients added US$1mn-5mn US$5mn-10mn US$10mn plus
Source: Company, Angel Research

2QFY12 270 15 55 10 7

3QFY12 258 9 58 9 7

4QFY12 237 6 60 10 7

1QFY13 245 19 61 9 8

2QFY13 247 11 56 9 8

Outlook and valuation

MindTree derives most of its IT services business (~69% of revenue) from growth verticals such as manufacturing and retail (~19% to revenue) and travel, media and services (~19% to revenue). The BFSI (~23% to revenue) vertical is witnessing slightly higher signs of pressure and caution. Because of muted growth in 1HFY2013, the management lowered its revenue growth guidance from 11-14% earlier to less than 11% now, which does not bode well with the company though this was already factored in our estimates keeping in mind the stretched growth rates required quarterly (FY2013E USD revenue growth ~8.5%). The management is confident that its IT services business would continue its momentum and has given offers to 3,000 campus graduates for FY2013, out of which ~2,000 are yet to join. Also, the company has given 1,000 campus offers for FY2014. This would help MindTree to rationalize its employee pyramid and cushion its margins. The company has recently set up a team to chase large deals. The management indicated that large deal closure is happening but at a slower rate. The management indicated that it remains in pursuit of 6-7 large deals (TCV of US$25mn+) and remains hopeful of closing at least one large deal in the next four weeks. We expect an 8.5% USD revenue growth for MindTree in FY2013. Overall, we expect the company to record an 8.9% and 12.8% CAGR in USD and INR revenue, respectively, over FY2012-14E. On the margin front, MindTree has been doing well since the past few quarters to rationalize its employee pyramid and cut down on SG&A expenses. These moves by MindTree as well as INR depreciation helped in improvement in margins from 11.8% in FY2011 to 15.3% in FY2012 and 22.1% in 2QFY2013 despite of having a negative wage hike impact. The move of rationalizing the employee pyramid has helped the company shift its employee pyramid significantly, with employees having less than three years of experience currently standing at ~36% of the total employee base as against 30% at the start of FY2012. Going ahead, for FY2013, MindTrees margins would face headwinds of INR appreciation trend being seen and utilization level coming down due to freshers joining into the system. Hence,
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Mindtree | 2QFY2013 Result Update

we expect the companys EBITDA margin to increase from 15.3% in FY2012 to 20.0% in FY2013. Further, we expect the company to record a 21.2% CAGR in its EBITDA over FY2012-14E. At the current market price of `677, the stock is trading at 9.1x FY2014E EPS of `74.7. We value the stock at 10x FY2014E EPS, ie, with a target price of `747, and maintain our Accumulate rating on the stock.

Exhibit 11: Key assumptions

Particulars Revenue growth-USD terms (%) USD-INR rate Revenue growth-INR terms (%) EBITDA margin (%) Tax rate (%) EPS growth (%)
Source: Company, Angel Research

FY2013 8.5 53.2 21.3 20.0 20.4 36.5

FY2014 9.4 51.0 4.9 17.7 24.0 1.8

Exhibit 12: Change in estimates

FY2013 Parameter (` cr) Net revenue EBITDA PBT Tax PAT Earlier estimates 2,334 455 376 86 290 Revised estimates 2,324 465 380 77 302 Variation (%) (0.5) 2.2 1.1 (9.9) 4.4 FY2014 Earlier estimates 2,481 437 418 100 318 Revised estimates 2,437 431 404 97 307 Variation (%) (1.8) (1.4) (3.2) (3.2) (3.2)

Source: Company, Angel Research

Exhibit 13: One-year forward PE(x) chart

1600 1400 1200 1000 800 600 400 200 0

(`)

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Price
Source: Company, Angel Research

24x

19x

14x

9x

4x

October 16, 2012

Oct-12

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Mindtree | 2QFY2013 Result Update

Exhibit 14: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Entp. KPIT Cummins Mahindra Satyam MindTree Mphasis NIIT^ Persistent TCS Tech Mahindra Wipro Reco. Accumulate Buy Accumulate Neutral Buy Neutral Accumulate Neutral Neutral Neutral Accumulate Accumulate Buy CMP (`) 584 113 2,354 -1 120 109 677 401 35 435 1,295 945 352 Tgt. price (`) 632 140 2,573 142 747 1,405 1046 421 Upside (%) 8.2 23.8 9.3 18.2 10.3 8.5 10.7 19.5 FY2014E EBITDA (%) 17.6 21.4 30.4 17.5 16.4 18.4 17.7 16.9 11.0 24.3 29.1 17.1 19.3 FY2014E P/E (x) 12.9 9.3 13.7 9.8 9.3 10.9 9.1 10.8 5.4 9.8 17.5 9.5 12.6 FY2011-14E 7.8 10.9 5.6 10.4 17.3 (0.6) 11.6 (0.5) (1.5) 7.7 10.8 4.2 7.3 FY2014E 1.4 1.2 2.6 0.6 0.8 1.1 0.8 0.8 0.3 1.0 3.5 1.7 1.4 FY2014E RoE (%) 21.1 23.9 23.1 13.6 20.0 22.2 19.7 12.6 14.3 15.5 28.6 20.5 17.9 EPS CAGR (%) EV/Sales (x)

Source: Company, Angel Research; Note: ^Valued on SOTP basis

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Mindtree | 2QFY2013 Result Update

Profit and loss statement (Indian GAAP, Consolidated)

Y/E March (` cr) Net sales S/w development exp. % of net sales Gross profit % of net sales SG&A expenses % of net sales EBITDA % of net sales Depreciation EBIT Interest expense, net Other income, net Profit before tax Provision for tax % of PBT PAT Minority interest Share in profit of associates Adj. PAT EPS (`) FY2010 1,296 798 61.6 498 38.4 252 19.5 246 18.9 65 180 3 77 255 40 15.6 215 215 54.4 FY2011 1,509 1,015 67.2 495 32.8 317 21.0 178 11.8 71 107 0 24 131 29 22.1 102 102 24.9 FY2012 1,915 1,248 65.2 667 34.8 374 19.5 293 15.3 70 223 0 38 261 43 16.4 218 218 53.7 FY2013E 2,324 1,440 62.0 884 38.0 418 18.0 465 20.0 64 401 1 (20) 380 77 20.4 302 302 73.3 FY2014E 2,437 1,568 64.3 869 35.7 439 18.0 431 17.7 73 357 0 47 404 97 24.0 307 307 74.7

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Mindtree | 2QFY2013 Result Update

Balance sheet (Indian GAAP, Consolidated)

Y/E March (` cr) Liabilities Share capital Application money Reserves and surplus Total shareholders' funds Minority interest Secured loans Unsecured loans Total debt Other long term liab. Total liabilities Assets Gross block - fixed asst. Acc. depreciation Net block Capital WIP Total fixed assets Goodwill Investments Deferred tax assets, net Loans and advances Other non-current assets Current assets Sundry debtors Cash and bank balance Investments Other current assets Total current assets Less:- Current liabilities Current liabilities Provisions Net current assets Total assets 211 49 224 674 161 53 425 801 257 72 625 1,005 241 88 874 1,303 262 93 1,119 1,605 237 52 195 484 283 46 111 200 639 408 60 308 179 954 420 260 374 148 1,203 441 453 390 191 1,474 515 253 261 25 286 15 127 21 562 262 301 0 301 1 22 42 11 590 331 259 9 268 1 32 54 26 690 396 295 9 303 1 40 59 26 810 469 342 9 350 1 45 64 26 40 631 671 3 3 674 40 736 776 4 4 21 801 41 917 957 4 41 44 3 1,005 41 1,215 1,255 4 41 44 3 1,303 41 1,517 1,558 4 41 44 3 1,605 FY2010 FY2011 FY2012 FY2013E FY2014E

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10

Mindtree | 2QFY2013 Result Update

Cash flow statement (Indian GAAP, Consolidated)

Y/E March (` cr) Pre-tax profit from operations Depreciation Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/dec in Current assets Current liabilities Net trade working capital Cashflow from operating activities (Inc)/dec in fixed assets (Inc)/dec in investments (Inc)/dec in deferred tax assets (Inc)/dec in intangibles (Inc)/dec in other assets Cashflow from investing activities Inc/(dec) in debt Inc/(dec) in equity/premium Dividends Cashflow from financing activities Cash generated/(utilized) Cash at start of the year Cash at end of the year (11) (48) (59) 221 (55) (26) (2) 131 (33) 15 (136) (82) (14) (232) 4 49 52 (161) (47) (208) (35) (86) 127 (0) 15 (32) 24 1 15 (12) 5 (6) 52 46 (301) 116 (185) 103 (36) (10) (45) (92) 40 (33) (5) 3 14 46 60 (48) (1) (49) 318 (100) (8) (5) (113) (5) (5) 200 60 260 (79) 26 (53) 327 (120) (5) (5) (130) (5) (5) 192 260 453 FY2010 178 65 243 77 320 40 280 FY2011 106 71 178 24 202 29 173 FY2012 223 70 293 38 331 43 288 FY2013E 400 64 464 (20) 444 77 367 FY2014E 357 73 430 47 478 97 380

October 16, 2012

11

Mindtree | 2QFY2013 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value Dupont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover (fixed assets) Receivables days Payable days 4.5 73 114 5.0 63 67 7.2 66 61 7.7 66 61 7.0 66 61 26.8 39.7 32.0 13.3 14.1 13.1 22.2 23.9 22.8 30.8 38.8 24.1 22.3 31.3 19.7 0.8 1.4 0.1 1.9 1.0 32.0 0.8 1.2 0.1 1.9 1.0 13.1 0.8 1.2 0.1 1.9 1.0 22.8 0.8 0.9 0.2 1.8 1.0 24.1 0.8 1.1 0.1 1.5 1.0 19.7 54.4 70.9 11.8 170 24.9 42.3 10.0 190 53.7 70.8 4.0 235 73.3 90.1 4.0 308 74.7 93.5 4.0 383 12.4 9.6 4.0 1.7 2.0 10.5 3.8 27.2 16.0 3.6 1.5 1.7 14.6 3.2 12.6 9.6 2.9 0.6 1.3 8.3 2.4 9.2 7.5 2.2 0.6 0.9 4.7 1.7 9.1 7.2 1.8 0.6 0.8 4.5 1.2 FY2010 FY2011 FY2012 FY2013E FY2014E

October 16, 2012

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Mindtree | 2QFY2013 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

MindTree No No No No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

October 16, 2012

13