The stock fell as much as 3.5% to Rs 5,770 before recovering slightly to trade 1.8% lower at Rs 5,875.70. This decline was in contrast to a 0.4% drop in the NSE Nifty 50 Index. Despite the recent fall, LTIMindtree's stock has risen 7.9% over the past year. Out of 42 analysts, 23 maintain a 'buy' rating, six recommend 'hold,' and 13 suggest 'sell,' with an average 12-month consensus price target indicating an 8% upside. The company's management expects margins to stabilize in a couple of quarters, with the aspirational range of 17-18% deferred.
Key takeaways:
- LTIMindtree's share price fell after Q3 results revealed a profit of Rs 1,086.7 crore, missing the estimate of Rs 1,144 crore.
- Brokerages raised concerns about the company's margins due to factors like utilisation calibration, business reinvestment, and increasing depreciation.
- Motilal Oswal maintained a 'buy' rating with a target price of Rs 7,700, citing superior offerings in data engineering and ERP modernisation.
- Nomura lowered its FY25-27 EPS estimates and target price, preferring Infosys and Wipro in the large-cap India IT services space.