As of 10:07 AM on August 28, 2024, shares of LTIMindtree are trading at ₹5,951.00, reflecting an increase of ₹199.45 or 3.47% from the previous close of ₹5,751.55. The stock opened at ₹5,775.00 and reached a high of ₹5,975.00 during the trading session, while the low was recorded at ₹5,770.00.
The positive momentum in LTIMindtree’s stock comes on the heels of an upgrade from Kotak Institutional Equities, which raised its rating from ‘Reduce’ to ‘Add’ and increased the target price from ₹5,500 to ₹6,200. The upgrade is based on expectations of a recovery in dollar revenue growth, projected at 4.4% for FY24, 6.5% for FY25, and 11% for FY26.
Analysts attribute this recovery to improvements in two key verticals: Banking, Financial Services, and Insurance (BFSI) and Hi-Tech sectors. The anticipated rebound in technology spending, particularly in the U.S. BFSI market, positions LTIMindtree as a potential beneficiary of increased client investments.
Despite the positive outlook, analysts have expressed concerns regarding limited scope for EBIT margin expansion in FY2025. Kotak also noted that leadership departures have stabilized over the past few months, which could help the company focus on driving revenue growth and realizing merger synergies.
Market reactions to LTIMindtree’s Q1 results have been mixed, with some analysts maintaining a cautious stance. For instance, Jefferies has an ‘Underperform’ rating with a target price of ₹4,920, while Investec has a ‘Sell’ rating with a target price of ₹5,370. Conversely, Nuvama and Motilal Oswal have issued ‘Buy’ ratings with target prices of ₹7,000, citing strong management commentary and growth potential.
Overall, LTIMindtree’s stock performance today reflects a positive response to the upgrade and the anticipated recovery in key sectors, but investors remain vigilant regarding potential challenges ahead.
