LTIMindtree Q3 Results Review - Headwinds To Profitability A Dampener: IDBI Capital

IDBI Capital Report

LTIMindtree Ltd. reported subdued Q3 FY24 numbers. The company expects Q4 growth to be similar to Q3 due to furloughs, delay in decision making and cautionary macro.

We expect LTIMindtree to register 11.7% YoY and 15.2% YoY revenue growth for FY25E and FY26E led by improvement in discretionary spend, reinvestment to drive growth and ramp up large deal won.

However, we expect margins to be impacted in the near term due to re-investment in business and transition cost of large deals.

Hence, we now expect the company to reach aspirational 18% margin in FY26E versus earlier expectation of FY25E.

Consequently, we have revised our FY25E EPS estimates downwards by 5%.

This coupled with recent run up in price; we downgrade the stock from 'Hold' to 'Sell' with a revised target price of Rs 5,660 (26 times FY26E earnings per share, introduced FY26 estimates, earlier target price Rs 4,910).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.