Target: ₹7,238
CMP: ₹6,156.45
We attended LTIMindtree’s analyst meet at its Mensa Campus in Navi Mumbai. ‘Elevating Outcomes’ with artificial intelligence or AI in everything was the underlying theme wherein the company articulated the impact of AI & provided a deep dive into the progress of its three-pronged strategy and key growth initiatives to navigate the AI wave.
LTIMindtree aims to achieve $10 billion in revenue by leveraging a strong foundation (large verticals BFSI & technology, mining 100+ Fortune 500 client base, horizontal capabilities of data & analytics, experience, core, cloud, and top-tier partnerships); pivoting to AI in everything approach; achieving 2x growth in large verticals BFSI & technology and 3x in others (manufacturing & resources, consumer, healthcare & life science); and strategic acquisitions. The timeframe implies 11-13 per cent CAGR.
We continue to model about 9.7 per cent $ revenue CAGR & 16 per cent PAT (₹) CAGR over FY25-27 and retain a target PE/G multiple of 2x. However, adjustments to 2HFY25F drive a modest change in our absolute estimates and target price. Weak recovery in the FSI vertical, large account-specific issues or challenges and/or furlough are downside risks.