LTIMindtree hits 52-week high; gains 3% on scheduled Nifty 50 inclusion

Thus far in the calendar year 2023, LTIMindtree has outperformed the market by surging 23%, as against 6.5% rise in the Nifty 50 and 5% gain in HDFC.

Shares of LTIMindtree hit a 52-week high of Rs 5,430, up 3.4 per cent on the National Stock Exchange (NSE) in Wednesday’s intra-day trade as the L&T Group company will replace housing mortgage company HDFC in Nifty-50 index from July 13.

In past four trading days, the stock price of LTIMindtree has appreciated by nearly 7 per cent. As per reports, LTIMindtree should see an inflow of about $150-160 million from passive funds due to inclusion in Nifty index.

Shares of HDFC were trading 3.3 per cent lower at Rs 2,788.80 at 10:56 AM. In comparison, the Nifty 50 was down marginally by 0.05 per cent at 19,380.

Meanwhile, the board of directors of LTIMindree are scheduled to meet on Monday, July 17, 2023, inter-alia, to consider, approve and take on record, the unaudited standalone and consolidated financial results of the Company for the quarter ended June 30, 2023 (Q1FY24).

Thus far in the calendar year 2023, LTIMindtree has outperformed the market by surging 23 per cent, as against 6.5 per cent rise in the Nifty 50. HDFC’s stock price was up 5 per cent during the same period.

The brokerage firm BNP Paribas expects LTIMindtree to report USD revenue growth of 1 per cent quarter-on-quarter (QoQ) (1.3 per cent QoQ in constant currency) due to the impact of hiring freeze and delayed decision making by clients, especially in the BFSI, hi-tech and retail verticals.

Analysts at brokerage firm model a 79bp expansion QoQ in earnings before interest tax (EBIT) margin to 17.1 per cent due to synergies, improved pyramid management and operating leverage.

Performance of BFSI, hi-tech and retail verticals; impact of macro headwinds on demand; margin guidance for FY24; FY24 revenue outlook; performance of top accounts; investments in GenAI partnerships and solutions; recent deal wins and deal pipeline; and update on the merger synergies are key watch out, the brokerage firm said.