IIFL has upgraded LTIMindtree to a Buy from Add with a 12-month target price of ₹6,500, indicating a potential upside of 13%. Key insights include:
- Earnings downgrade cycle likely to bottom out in 3QFY25, with recovery anticipated.
- LTIMindtree underperformed the IT index by 34% in CY24, presenting a valuation opportunity.
- Double-digit revenue growth expected to resume from FY26.
- Margins are projected to expand by 170bps over FY25ii-27ii after bottoming out.
- Concerns over management stability appear overdone, with senior management churn stabilizing.
The current market price (CMP) of LTIMindtree is ₹5,691.30.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Readers are advised to conduct their own research or consult a financial expert before making investment decisions.
