Shares of LTIMindtree gained mildly to Rs 6,262 apiece on November 27 after the company’s management revealed an ambitious target of reaching $10 billion in revenue by the fiscal year 2031-32 during its recent analyst meet. While the projection underscores LTIMindtree's long-term vision, brokerages remained cautious, flagging ongoing challenges in discretionary spending that could weigh on near-term growth.
Nomura retained its "reduce" rating on the stock with a target price of Rs 5,140 per share, citing potential upside risks from large deal wins and better-than-expected margin expansion.
In contrast, Morgan Stanley issued an "overweight" rating with a target price of Rs 7,050 per share. While discretionary spending could remain under pressure, Morgan Stanley noted positive trends in LTIMindtree’s sales momentum, including a strong deal pipeline and new client additions.
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The CEO highlighted three key pillars to achieve the company’s milestone of $10 billion revenue by 2031-32E. Firstly, by building on scaling up key verticals (BFSI and Tech), mining F500 accounts further (has 105 clients), harnessing deep horizontal capabilities particularly in the areas of data and analytics, experience, core and cloud, and leveraging top-tier partnerships with hyperscalers and core platforms.
Secondly, a strategic pivot towards AI by infusing AI in all core services to drive efficiencies and a better experience for customers and empowering people and make AI humane. Finally, a turbocharged portfolio - by doubling its scaled key verticals - be it BFSI or hi-tech and accelerate growth in other verticals and grow them to 3x of current levels.
Additionally, LTIMindtree’s CFO emphasised the importance of revenue growth and value-based selling as key levers to improve margins. Through initiatives like "Project North Star," the company aims to reduce resource costs, enhance productivity via AI, and keep overhead cost growth below revenue growth. Achieving a double-digit revenue growth trajectory is seen as critical to meeting the company’s goal of 17-18 percent EBIT margins.
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