'Buy' LTIMindtree Reiterates Motilal Oswal, Sees 35% Upside — Here's Why

In the brokerages' earlier note, Motilal Oswal have pitched LTIMindtree as its top pick for 2025. Even in bear case scenario, LTIMindtree could offer superior or at-par earnings growth versus key large-cap IT names..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.LTIMindtree Ltd. stock has corrected by 22% in the past three months, despite multiple positive developments: US BFS growth recovery, positive QoQ growth trajectory in 9M FY25, and the most important being the appointment of a new CEO, Mr. Venu Lambu. Key reasons for this underperformance include the slower-than expected discretionary pickup, revenue decline in Microsoft, and uncertainty over margins. The stock now trades at 22x FY27e EPS, versus 22/22/21x for Infosys/TCS/HCLTech. We find these valuations as an attractive risk-reward opportunity and like the stock at current levels. In our earlier note, we have pitched LTIMindtree as our top pick for 2025. Even in our bear case scenario, LTIMindtree could offer superior or at-par earnings growth vs key large-cap IT names. Our base case scenario now assumes revenue growth of c9% for FY26e and c11.5% for FY27e, but we pare our margin expansion assumptions further to account for more aggressive selling, general and administrative investments. We concede that near-term catalysts—weakness in hi-tech in Q4 and management’s time to settle in—preclude an immediate recovery in price, but we reiterate Buy on strong fundamentals and keep our focus on the turnaround. We also cut our target multiple by 10%, in line with our other stocks, to account for lower risk appetite in the current market. Reiterate Buy with a target price of 6,600. .Click on the attachment to read the full report:.Shree Cement — Earnings Growth, Superior Profitability Priced In, Says Motilal Oswal Maintaining 'Neutral'.DISCLAIMERThis 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.

'Buy' LTIMindtree Reiterates Motilal Oswal, Sees 35% Upside — Here's Why

Motilal Oswal reiterates Buy on strong fundamentals and keep its focus on the turnaround.

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