The stock rose 21 per cent to Rs 305.50 in the three trading sessions last week on strong profit growth during the quarter ended March 2009. Its consolidated net profit jumped 115.6 per cent to Rs 18.80 crore over the sequential quarter ended December 2008.
The small-cap stock has outperformed the market over the past one month, gaining 49 per cent compared to a 19 per cent gain in the Sensex. The current price of Rs 305 discounts its earning per share of Rs 13.84 for the year ended March 2009 by 22.03 times. Compared to this, Infosys is available at P/E of 14.42, TCS at 11.60 and Wipro at 12.41, based on their EPS for the year ended March 2009.
The profit for the quarter was boosted by strong profitability in Aztecsoft. Aztecsoft is a subsidiary of MindTree, which delivers services in five key technology areas: data management/ business intelligence, integration engineering, mobile applications, secures identity management and Web services. Mindtree had acquired majority stake in Aztecsoft in May 2008 and holds 80 per cent stake.