LTIMindtree’s share price fell 1.04% to Rs 5,401 during the intra-day on Friday. Despite today’s downfall in the stock price of the company, the brokerage houses have shown optimism on the stock. The share price, however, surged nearly 6% yesterday on the news of the company’s earnings in Q2. LTIMindtree, the sixth-largest IT services firm, on Wednesday, reported a sequential rise of less than 1% in its net profit to Rs 1,162 crore for the second quarter, mainly due to a muted revenue growth and the impact of wage hikes carried out during the quarter.
Also Read
ITC under pressure on Q2 results: Should you buy, sell or hold the stock?
Let’s delve into the calls of some of prominent brokerage houses-
Jefferies: Hold – Target Price: Rs 5,575
“LTIMindtree’s 2Q results beat estimates with both revenues and margins surprising positively. Management expects a pick-up in growth across several verticals led by timely deal ramp-ups. A strong 20% YoY growth in deal wins, headcount additions after three straight quarters of decline offers comfort on 2H being better than 1H. We raise our estimates by 1-5% and expect LTIMindtree to deliver 20% EPS CAGR over FY24-26. We raise our Target Price to Rs 5,575 and upgrade LTIMindtree to ‘Hold’.”
HDFC Securities: Buy – Target Price: Rs 5,890
“We believe that LTIMindtree will continue to grow at a premium to tier-1 IT and its margin will converge with tier-1 IT median driving superior earnings growth. LTIM’s valuations remain most attractive within large-cap IT on a PEG basis (18% EPS CAGR over FY23-26E vs. large-cap peers at 10% CAGR). Maintain ‘Buy’ on LTIMindtree with Target Price of Rs 5,890 based on 26x Sep-25E EPS.”
Also Read
Hindustan Unilever shares slip after flat Q2 results; Should you buy, sell or hold HUL stock?
Anand Rathi: Buy – Target Price: Rs 6,010
“LTIMindtree had a relatively strong Q2, with 1.6% sequential growth and TCV wins of $1.3bn, up 20% y/y. Growth was broad based across sectors barring BFSI, which declined sequentially. Hi-Tech also grew. Book-to-bill was 1.2x (LTM average 1.3x), suggesting on-time ramp-ups. Q2 EBIT margin declined 70bps q/q, 152bps y/y, to 16%, on wage hikes and resumption of hiring. Estimates largely unchanged; target tweaked to Rs 6,010 (from Rs 6,060) 26x FY26e (rolled forward). We maintain a ‘Buy’.”
(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
Related Posts
A total of 11 companies will hit the bourses in the week ending May 19. In the mainboard, two companies will see listings and in the SME nine companies will hit the secondary markets.
Mainboard Listing
Aadhar Housing Finance
The company will list on May 15. It collected Rs 3,000 crore from investors by offering them…
Read moreThe benchmark equity indices ended Wednesday’s trading session in the muted territory. The NSE Nifty 50 dipped 41.90 points or 0.18% to settle at 23,516, while the BSE Sensex gains marginally higher 36.46 points or 0.05% to 77,337.60. Bank Nifty index ended higher by 957.15 points or 1.90% to settle at 51,398.05.
The broader indices ended in negative territory, with fall led b…
Read moreBy Mihika Sharma
The rupee weakened marginally by 0.1% last week against the dollar, ending at 83.49. Initially, the rupee faced pressure from a strong dollar at the start of the week. Although the dollar index weakened as the week progressed, elevated crude oil prices and a weak yuan continued to weigh on the rupee. During the week, there were net FPI inflows totalling U…
Read moreOil prices jumped 1.5% in the first session of the New Year, due to potential supply disruptions in the Middle East after a naval clash in the Red Sea, and hopes of strong holiday demand and an economic stimulus in China, the top crude importer.
Brent crude rose $1.20, or 1.5%, to $78.24 a barrel by 0438 GMT while U.S Come from Read more
Pot-smokers have a holiday to look forward to in April with 4/20, and Activision is once again honoring the day with special DLC for Call of Duty Come from Sports betting site VPbet. This year, Activision is releasing a “Stoner’s Delight” DLC pack for Black Ops Cold War and Warzone, according to a leak.
This new store bundle was di…
Read moreThe only thing standing between the world and ultimate destruction in The Entropy Centre is you and a series of puzzles. That’s a lot of pressureCome from Sports betting site VPbet. Now that you’re on the second set of puzzles, things are only going to get more difficult. Don’t buckle. If you’re having trouble, we’ve…
Read moreThe renowned casino in Punta del Este, Uruguay, Enjoy, is put on sale due to the financial reorganization of the company that owned the casino.
The sale of the popular casino:
From now on, the popular casino, which had been visited mostly by Brazilians who were looking for fun in nearby casinos, has new owners, <…
Read moreCryptoGame is a Bitcoin and altcoin online casino that has been serving the online gambling industry since 2014. The casino offers a wide range of games, giving the everyday player different options to enjoy the best of online games. In this review, we shall take an in-depth look at the services of this casino to determine w…
Read moreIn the Philippines and local sportsbetting firm Jade Entertainment and Gaming Technologies Incorporated has reportedly announced the impending launch of a pair of new websites to target sports wagering aficionados in India and its home nation.
According to a report from Inside Asian Gaming, the Manila-headquartered enterprise was already responsible for the Jade …
Read moreThis makes the 25th consecutive month in which Nevada collected more than $1 billion from its gaming operations. Yet, there has been a slowdown, as casino revenue declined on an annual basis, the Nevada Gaming Control Board confirmed in an update on Tuesday.