I-Sec maintains Hold call on LTIMindtree, lowers target price to Rs 4,410

ICICI Securities has maintained its Hold call on LTIMindtree with a revised target price of Rs 4410 (Rs 4,510 earlier). The current market price of LTIMindtree is Rs 4530. LTIMindtree, incorporated in 1996, is a Large Cap company with a market cap of Rs 134329.94 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 31-03-2025, the company has reported a Consolidated Total Income of Rs 10022.90 crore, up 1.51% from last quarter Total Income of Rs 9873.40 crore and up 10.14% from last year same quarter Total Income of Rs 9100.50 crore. The company has reported net profit after tax of Rs 1128.60 crore in the 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.James Abraham, Mr.R Shankar Raman, 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 31-03-2025, the company has a total of 30 Crore shares outstanding.


Investment Rationale
LTIMindtree reported muted performance with revenue growth down 0.6%/0.7% CC/USD QoQ, underperforming I-Sec estimates. Factors leading to slower growth were: 1) Delayed ramp-up and deferral of deals. 2) Ramp-down in healthcare vertical. 3) Top-5 clients? revenue declining from AI-led gain sharing. LTIMindtree expects the deferred deals to come through in Q1FY26. The margin was in line with I-Sec estimate at 13.8%, flat QoQ. The CEO designate?s three-pronged strategic emphasis on efficiency is expected to improve margin in Q1FY26. ICICI Securities reckons that growth drivers for FY26 look bleak with slow revenue conversion, weakness in top client and a subdued macro. The brokerage builds in modest 6.8% YoY USD growth for FY26E and 67bps QoQ EBIT margin expansion in Q1FY26E. We cut FY26?27E EPS by 3?6%. They have retained HOLD rating, revised target price to Rs 4,410 (Rs 4,510 earlier) on a target P/E of 22x.

Promoter/FII Holdings
Promoters held 68.57 per cent stake in the company as of 31-Mar-2025, while FIIs owned $Parser.toNumber($MarketsData-marketResults.newShareHolding.summary.fii.percentage) per cent, DIIs 15.45 per cent.