ICICI Direct advises long term investors to buy MindTree

BANGALORE: ICICI Direct has advised long term investors to buy MindTree even as the macroeconomic environment remains uncertain.

"Though our rationale for upgrading MindTree to buy continues to hold, macro remains uncertain. Consequently, we believe, investors could book partial profit," the research firm said in a report today morning.

ICICI Direct had upgraded MindTree to 'buy' recommendation, post previous quarter earnings, with a target price of Rs 591, which was achieved on April 27, 2012. Bangalore based MindTree is expected to report its first quarter results on July 16th.

During the fourth quarter of FY'12, MindTree reported a net profit growth of 115.31% YoY growth and 13.7% QoQ, beating the street estimates. MindTree CEO Krishnakumar Natarajan had said that he expects the firm to grow above the industry average.

India's IT services firms are expected to report muted earnings in the June quarter as demand for information technology and software services remain soft. Bangalore based Infosys will kick off the Q1 results season on July 12th.