NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
LTIMindtree Ltd. reported constant currency revenue growth of 2.6% QoQ (our estimate: +1.9%), led by rampup in past deal wins. BFSI (+2.8% QoQ) and Tech (+8% QoQ) led the growth.
Operating profit margin at 15% up 30 basis points QoQ (our estimate: 15.2%).
Management highlighted that it is seeing acceleration in budget spending towards high-priority transformation programs from top clients and increased investments in AI across verticals which may lead to sustained growth momentum in Q2 and continue beyond.
We scale up our growth estimates and tweak our FY25/FY26E EPS estiamte (-2%/+2%) and expect 8.2% CC CAGR much better than ~5% for Top-five IT peers over FY24-FY26E, which would imply premium relative valuations.
Given improved outlook for BFSI we believe LTIMindtree would continue to deliver strongest growth in tier I pack for rest of the year, thus, we upgrade our rating from Sell to ‘Accumulate' with target price of Rs 5900 at 30 times (earlier 24 times) FY26E, implies 2.5 times on PEG basis.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
