Buy LTIMindtree, target price Rs 5320: ICICI Direct

ICICI Direct has buy call on LTIMindtree with a target price of Rs 5320.The current market price of LTIMindtree is Rs 4541.35. Time period given by analyst is 12 months when LTIMindtree price can reach defined target.


LTIMindtree, incorporated in the year 1996, is a Large Cap company (having a market cap of Rs 132894.84 Crore) operating in IT Software sector.


LTIMindtree key Products/Revenue Segments include Software Development Charges & Other Services for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 8771.80 Crore, up 4.56 % from last quarter Total Income of Rs 8388.90 Crore and up 24.48 % from last year same quarter Total Income of Rs 7046.80 Crore. Company has reported net profit after tax of Rs 1000.70 Crore in latest quarter.

The company’s top management includes Mr.A M Naik, Mr.Bijou Kurien, Mrs.Apurva Purohit, Mr.Vinayak Chatterjee, Mr.Sanjeev Aga, Mr.Rajnish Kumar, Mr.James Abraham, Mr.R Shankar Raman, Mr.Venugopal Lambu, Mr.Nachiket Deshpande, Mr.Sudhir Chaturvedi, Mr.Debashis Chatterjee, Mr.S N Subrahmanyan, Mr.Chandrasekaran Ramakrishnan. Company has B K Khare & Co. as its auditors. As on 31-12-2022, the company has a total of 30 Crore shares outstanding.

Investment Rationale
Merger expected to provide cross sell and up sell opportunities with scale benefits likely to kick in while scouting for large deals. The brokerage expects LTIM to register 17.5% CAGR revenue growth in FY22-25E.

Promoter/FII Holdings
Promoters held 68.69 per cent stake in the company as of 31-Dec-2022, while FIIs owned 9.21 per cent, DIIs 10.39 per cent.