LTIMindtree slips 3% after posting Q3 results; Is it a buying opportunity?

LTIMindtree shares slipped 3.4 per cent in Friday's trade on BSE, logging an intraday low at Rs 1,832 per share. The selling in stock came after the company reported its Q3 numbers and brokerages were mixed. 

 

Around 9:36 AM, LTIMindtree share price was down 3.3 per cent at Rs 5,781.8 per share on BSE. In comparison, the BSE Sensex was down 0.42 per cent at 76,721.33. The market capitalisation of the company stood at Rs 1,71,306.37 crore. The 52-week high of the stock was at Rs 6,764.80 per share and the 52-week low was at Rs 4,518.35 per share. 

What brokerage recommend on LTIMindtree post Q3?

Nomura retained 'Reduce' on LTIMindtree and cut the target price to Rs 5,070 per share from Rs 5,090

 

In the report, the brokerage also lowered its FY25-27F earnings per share (EPS) by over 1 per cent. 

 

"Our FY25-27F EPS are lower than consensus by 6-12 per cent mainly on account of lower margin expectations," Nomura said.

 

Kotak Institutional Equities has retained its 'Buy' call on LTIMindtree for a target price of  Rs 6,750 per share. 

 

As per the analysts at Kotak LTIMindtree reported an interesting quarter with healthy revenue growth of 3.4 per cent in US dollar terms, ex-technology vertical, and record-high total contract value (TCV) of US$1.68 bn. 

 

They view the decline in the technology vertical due to the sharing of productivity gains with the top client as largely client-specific and expect reasonable growth after the stabilization in 4QFY25.   Also Read: Axis Bank Q3 results

 

However, they believe LTIMindtree is well-positioned to grow double digits in FY2026 and beyond, with steady market share gains. Further, cuts in growth and margin estimates lead to a 3-6 per cent FY2025-27E EPS cut.

 

Centrum Broking also maintained 'Buy' on the stock but made a downward revision in its target price to Rs 7,188 per share from Rs 7,250 per share. 

 

The brokerage expects a sustained revenue growth momentum in Q4FY25, supported by a ramp-up of recently signed deals, AI project deployments, and a revival of discretionary spending in tech. 

 

The deal pipeline remains strong, driven by cost optimisation and vendor consolidation deals, providing medium-term visibility," the reports read. 

 

According to reports, Citi maintained ‘Sell’ on LTIMindtree and cut the target to Rs 5,375, from Rs 5,460. Also, Macquarie maintained ‘Outperform’ with a target of Rs 7,100 and Morgan Stanley continued with an ‘Overweight’ rating with a target of Rs 6,800.

LTIMindtree Q3 results

The company reported its Q3FY25 results on Thursday after market hours. In the third quarter ended December 31, 2024, LTIMindtree's net profit declined 13.2 per cent quarter-on-quarter (Q-o-Q) basis to Rs 1086.7 crore as compared to Rs 1,252 crore in Q2. On a year-on-year (Y-o-Y basis, the profit after tax (PAT) declined 7 per cent. 

 

The company's revenue for the quarter under review stood at Rs 9,661 crore, up 2 per cent, as compared to Rs 9432.9 crore in Q2. On a yearly basis, the revenue rose 4.6 per cent. 

 

Besides, the company's earnings before interest and tax (Ebit) stood at Rs 1,329 crore as compared to Rs 1,458 crore in Q2. Its Ebit margins stood at 13.8 per cent as compared to 15.5 per cent year-on-year (Y-o-Y). 

 

In the past one year, LTIMindtree shares have lost 5 per cent against Sensex's rise of 7.7 per cent.