Motilal Oswal neutral on LTIMindtree

Motilal Oswal has neutral call on LTIMindtree with a target price of Rs 4950.The current market price of LTIMindtree is Rs 4844.

LTIMindtree, incorporated in the year 1996, is a Large Cap company (having a market cap of Rs 144712.25 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 4976.00 Crore, up 6.62 % from last quarter Total Income of Rs 4666.90 Crore and up 28.31 % from last year same quarter Total Income of Rs 3878.20 Crore. Company has reported net profit after tax of Rs 679.80 Crore in latest quarter.

The company’s top management includes Mr.A M Naik, Mr.Sanjeev Aga, Mr.Rajnish Kumar, Mrs.Aruna Sundararajan, Mr.R Shankar Raman, Mr.Nachiket Deshpande, Mr.Sudhir Chaturvedi, Mr.James Abraham, Mr.S N Subrahmanyan, Mr.Vinayak Chatterjee. Company has B K Khare & Co. as its auditors. As on 30-09-2022, the company has a total of 18 Crore shares outstanding.

Investment Rationale
The brokerage sees the combined entity benefiting from strong revenue synergies in theform of strong cross-sell and up-sell opportunities, diverse capabilities, andaccess to larger deals. Margin may see an uptick as LTIM scales up, it noted. Motilal Oswal values the stock at 25x FY24E EPS (similar multiple assigned to the erstwhileLTI) and ascribe a Neutral rating, with a TP of INR4,950, as the CMP fairly factorsin revenue synergies and other benefits from being a larger entity.

Promoter/FII Holdings
Promoters held 74.0 per cent stake in the company as of 30-Sep-2022, while FIIs owned 8.42 per cent, DIIs 8.05 per cent.