{"id":"f-e550251d2f-7318b7b1-fed0-52cf-a0ff-9fdf3c7a3b70","title":"LTIMindtree shares fall 6% on Q3 results; Analysts see limited scope for re-rating","description":"Of the 48 analysts that have coverage on LTIMindtree's shares, 23 have a \"buy\" rating, 12 have a \"hold\" rating and eight have a \"sell\" rating.","timestamp":1768894292,"category":"business","headline":"LTIMindtree shares fall 6% on Q3 results; Analysts see limited scope for re-rating","modifiedHeadline":"LTIMindtree Stock Drops 6% on Q3 Results","subCategories":["scid_0f705da1"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"68","fcSummary":"ltimindtree shares fell 6% after q3 results. analysts cited limited re-rating scope despite some positive views, with clsa maintaining an outperform rating and others like morgan stanley and nomura holding neutral stances, while citi issued a sell rating.","summary":"LTIMindtree shares plunge 6% after Q3 results; analysts cite limited re-rating potential amid mixed ratings.","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/cnbc-tv18/f-e550251d2f-7318b7b1-fed0-52cf-a0ff-9fdf3c7a3b70","sourceUrl":"https://www.cnbctv18.com/market/ltimindtree-share-price-fall-q3-result-reaction-guidance-fy26-buy-sell-target-re-rating-impact-19824236.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/Cq00p4KHDue0.webp","content":"Shares of LTIMindtree Ltd. declined 6% on Tuesday, January 20, as analysts, led by CLSA, saw limited scope of re-rating on the stock after its third quarter results, that were reported after market hours on Monday.\n\n
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\n Despite the warning, CLSA retained its positive stance on the stock, while Morgan Stanley and Nomura remained \"neutral\". Citi has a bearish view on the stock.\n
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Here's a look at what analysts had to say:\n
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CLSA

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\n CLSA has an \"outperform\" call on LTIMindtree with a price target of ₹7,067 per share, implying a potential upside of 10.3% from its previous closing price of ₹6,407 apiece.\n
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\n It said the company's third quarter performance was in-line with estimates, the it has maintained its guidance for double-digit revenue growth by the fourth quarter.\n\n
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\n LTIMindtree witnessed strong deal wins across BFSI, public markets, consumer and media. The deal ramp-ups offset AI-led productivity impact, according to CLSA, adding that the key accounts are set to bottom out in the fourth quarter.\n
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\n However, the stock has limited scope for re-rating, with earnings-per-share (EPS) growth will drive its upside, CLSA's note said.\n
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Morgan Stanley

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\n The brokerage has an \"equal-weight\" rating on the stock, with a price target of ₹6,300 per share, indicating a potential downside of close to 2% from Monday's closing levels.\n\n
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\n It said the positives include growth in top hi-tech client and BFSI bottoming out, although near-term margin pressure remains a concern. At the current valuation, the risk-reward is balanced, as per Morgan Stanley's view.\n
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Nomura

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\n Nomura too has a \"neutral\" rating on LTIMindtree with a price target of ₹5,900 per share, indicating a potential downside of 7.9% from Monday's close.\n
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\n It said the third quarter results range from in-line to a modest miss depending on the parameters. The earnings before interest and tax (EBIT) margin is at 16.1%, which is below their estimates.\n\n
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Citi

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\n Citi has a \"sell\" rating on LTIMindtree with a price target of ₹5,415 per share, indicating a potential downside of 16.8% from its previous close.\n
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\n It said the company's revenue was aided by seasonal pass-throughs, while margin was helped by lower selling, general and administrative (SG&A) expenses.\n
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Q3 performance

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\n The company reported a mixed performance in the December quarter\n, with its net profit declining sharply from last year due to a one-time impact from new labour codes, even as its revenue and operating margins beat estimates.\n\n
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\n LTIMindtree's net profit of ₹959.6 crore was well below a CNBC-TV18 poll of ₹1,417 crore. It also declined 30.5% sequentially from 1,381 crore.\n
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\n Its revenue of ₹10,781 crore was marginally above Street estimates of ₹10,738 crore and was up 3.7% sequentially. Dollar revenue increased 3% sequentially to $1,208 million.\n
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\n LTIMindtree's earnings before interest and tax (EBIT) was at ₹1,737 crore, in comparison to the CNBC-TV18 poll of ₹1,719 crore. However, EBIT margin expanded to 16.1% from 15.9% in the previous quarter.\n\n
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\n Of the 48 analysts that have coverage on the stock, 23 have a \"buy\" rating, 12 have a \"hold\" rating and eight have a \"sell\" rating.\n
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\n Shares of LTIMIndtree were down 6.3% at ₹6,011.5 apiece around 10.10 am on Tuesday. The stock has gained 17% in the last six months.\n
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Also Read: Aditya Birla Fashion shares fall 8% after equity worth ₹289 crore changes hands","readDurationInMinutes":"6","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["LTIMindtree shares drop 6% after Q3 results.","Analysts issue mixed ratings: CLSA \"outperform\", MS/Nomura \"neutral\", Citi \"sell\".","Q3 profit down 30.5% sequentially; revenue slightly beats estimates."],"tags":["LTIMindtree","StockMarket","Q3Results","AnalystRatings","CLSA","MorganStanley","Nomura","Citi","BFSI","RevenueGrowth","EPS","EBITMargin","SharePrice","Investment","FinancialAnalysis"],"consent":true,"redirectionEnabled":false}

LTIMindtree shares fall 6% on Q3 results; Analysts see limited scope for re-rating

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