Reduce LTIMindtree; target of Rs 6100: Emkay Global Financial

Emkay Global Financial recommended reduce rating on LTIMindtree with a target price of Rs 6100 in its research report dated November 27, 2024.

Broker Research

November 27, 2024 / 13:31 IST

Reduce

Emkay Global Financial's research report on LTIMindtree

At its analyst meet, LTIMindtree (LTIM) highlighted the proliferation of AI across the value chain and the company’s readiness to capitalize on this new opportunity. AI is fundamentally transforming the way clients and system integrators are functioning, and LTIM aims to be at the forefront of this change. The company’s pivot to AI – AI in everything, everything for AI, and AI for everyone – has started reaping benefits, with AI now being a key part of the recent deal wins. The management outlined its goals—revenue of USD10bn with a strong foundation, well scaled verticals, marquee client base, deep horizontal capabilities, and strong partnerships—as being essential pillars of this journey. Along with its ~1.5x faster than industry revenue growth ambitions, LTIM continues to aspire for achieving 17-18% EBITM.

Outlook

Discretionary spend has not yet returned and, with the US elections now out of the way, clients will finalize their budgets in coming months; this should provide better visibility for FY26 revenue growth. We maintain REDUCE and TP of Rs6,100 at 28x Sep-26E EPS.

For all recommendations report, click here