LTIMindtree Ltd. share price target

LTIM reported Q1FY24 revenue of US$1,059mn, up 0.1% QoQ (lower than I-Sec estimate of 0.6%) and 8.2% YoY in CC terms. EBIT margin at 16.7% was 27bps higher than I-Sec estimate (of 16.4%) on account of operational efficiencies, particularly utilisation, which increased from 81.7% in Q4FY23 to 84.8% in Q1FY24.

Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we recommend HOLD on the stock.

LTIMindtree (LTIM) has reported Q4FY23 revenue at US$1057.5mn, +0.7% QoQ in CC terms and +1% QoQ in US$ (in line with our estimate and lower than consensus estimate of 2.8% QoQ US$). Revenue growth was led by BFSI (2.6% QoQ US$), retail, CPG, travel (2.4% QoQ US$) and manufacturing (1% QoQ US$), while HiTech declined 1.5% QoQ US$ due to decision-making delays by clients in starting certain projects.