LTIMindtree gains over 3% after in-line Q1FY25 results; Morgan Stanley raises target to Rs 6,070

Shares of LTIMindtree in early trade gained up to 3.5 per cent at day’s high to Rs 5,753.90 as the global technology consulting and digital solutions company posted in-line Q1 results.

For the reporting quarter, the company’s revenue grew 2.8 per cent sequentially to Rs 9,142.6 crore, while on a year-on-year basis, it logged over 5 per cent growth. Consolidated net profit at the software and consulting firm grew 3.1 per cent sequentially to Rs 1,135.1 crore. Nevertheless, net profit declined 1.5 per cent on-year. In the previous March quarter, the company reported a net profit of Rs 1,100 crore.

Zee Business research desk expected the company to report a consolidated PAT of Rs 1,200 crore in the April-June quarter, a 9.1 per cent sequential increase

The revenue in constant currency (CC) terms registered a 2.6 per cent uptick, while on-year it logged 3.7 per cent growth.

“While the environment remains unchanged, fiscal 25 started on a positive note for us with Q1FY25 revenue of USD 1.1 billion, registering a 2.5 per cent QoQ and 3.5 per cent YoY revenue growth in USD terms. Our Q1FY25 EBIT expanded to 15 per cent and order inflow remained stable at USD 1.4 billion,” said the company’s Debashis Chatterjee, Chief Executive Officer and Managing Director.

The company's EBIT margin expanded by 30bps sequentially to 15 per cent in the reporting quarter as against 14.7 per cent in the preceding quarter.

Should you buy, sell or hold LTIMindtree after its broadly in-line Q1 results?

Global brokerage Morgan Stanley while maintaining an equalweight call on the stock has given the most bullish target on LTIMindtree of Rs 6,070, implying probable gains of over 9 per cent from the last close.

Meanwhile, Jefferies has continued with its underperform rating on the stock while raising the target to Rs 4,920. The brokerage highlighted that the company registered a revival in revenue growth across key verticals. Further, it added that while the growth outlook is improving, there remain limited levers for margin expansion.