Buy LTIMindtree; target of Rs 6094: Anand Rathi

Anand Rathi's research report on LTIMindtree

With broad-based sequential constant currency (“CC”) revenue growth ahead of large cap peers, expanded margins q/q, and strong deals anchored in AI and cloud transformation themes, LTIMindtree had a steady Q1 FY26 ▪ BFSI (37% of revenue) and Retail (15%) led recovery, as the order book continued to be strong (16.4% YoY) Transformative efforts through Fit4Future (drove~100bps margin expansion) are beginning to have tangible results, supporting medium-term confidence despite near-term macro challenges Management confident of sustaining growth momentum and achieving close to double-digit revenue growth in H2FY26, driven by large deal wins as reiterated by CEO in an interview post management call.

Outlook

Valuation. No material change in our estimates. We retain our Buy recommendation on the stock, with FY27e/FY28e P/E 25.4x/ 22.7x (vs. the last five-year avg. of the one-yr-fwd. of ~33x) and FY26e-28e EPS CAGR of 15.7% . Our target price is Rs.6,094, implying ~19% potential upside to CMP.

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