Buy LTIMindtree, target price Rs 7,400: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on LTIMindtree with a target price of Rs 7,400. The current market price of LTIMindtree is Rs 6182.7. LTIMindtree, incorporated in 1996, is a Large Cap company with a market cap of Rs 183268.24 crore, operating in IT Software sector.

LTIMindtree's key products/revenue segments include Software Development Charges & Other Services for the year ending 31-Mar-2023.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 9731.80 crore, up 3.86 % from last quarter Total Income of Rs 9369.70 crore and up 7.55% from last year same quarter Total Income of Rs 9048.60 crore. The company has reported net profit after tax of Rs 1251.60 crore in the latest quarter.

Investment Rationale
Motilal Oswal Financial Services reiterates a BUY rating on LTIMindtree due to its superior offerings in data engineering and ERP modernization, positioning it well to capture pre-GenAI expenditures. They anticipate LTIMindtree to outperform its large-cap peers and expect low double-digit CC growth for FY26. However, margins remain a concern and the biggest risk to their thesis. The brokerage values LTIMindtree at 35x Sep?26E EPS. The target price of Rs 7,400 implies 19% upside potential.

Promoter/FII Holdings
Promoters held 68.6 per cent stake in the company as of 30-Sep-2024, while FIIs owned 7.39 per cent, DIIs 14.73 per cent.