Buy LTIMindtree; target of Rs 7360 Prabhudas Lilladher

Prabhudas Lilladher is bullish on LTIMindtree has recommended buy rating on the stock with a target price of Rs 7360 in its research report dated November 27, 2024.

Broker Research

November 27, 2024 / 11:26 IST

Buy

Prabhudas Lilladher's research report on LTIMindtree

We attended LTIM's Investor Day, where the company outlined its aspiration to achieve US$10 billion in revenue by FY 2031-32. The company believes this goal could be accelerated through strategic acquisitions and industry returning to double-digit growth. LTIM has laid the strategic groundwork to achieve this goal and has invested in enhancing and expanding its AI offerings to capitalize on the rising demand for Gen AI services, which it views as the next major growth driver for the industry. On the margin front, LTIM initially aims to increase its margin to 17-18% range and subsequently improve it further through levers such as revenue growth, pricing, pyramid optimization, productivity enhancements, and G&A optimization.

Outlook

We keep our estimates unchanged and expect LTIM’s USD revenue/earnings CAGR of 9.7% and 13.7%, respectively between FY24-27E. Maintain BUY with TP of 7,360 valuing the company at 32x FY27E EPS.

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