Kotak expects LTIMindTree to post revenue growth of 6.5 per cent in FY2025, which could improve from 4.4 per cent in FY2026 to 11 per cent in FY2024 due to improvement in the two largest verticals – BFSI and hi-tech .
LTIMindtree, which is one of the stocks to be dropped from the Nifty 50 in the September restructure, saw its shares rise 8 per cent in Wednesday trade after Kotak Institutional Equities upgraded its rating to ‘ADD’ from ‘Reduce’ earlier. ‘ and upgraded its target price. Rs 6,200 from Rs 5,500 earlier, it said, adding that IT major would be the major beneficiary of the recovery in the affected banking and financial services (BFS) and hi-tech sectors.
On Wednesday, the stock almost touched Kotak’s day high of Rs 6,199.30 on BSE as it climbed 7.82 per cent over its previous close. Later it was trading at Rs 6,046.60 with a rise of 6.91 percent. Kotak expects LTIMindTree to be a good compounding play with a strong and consistent EPS growth path.
Kotak expects LTIMindTree to register revenue growth of 6.5 per cent in FY2025, which could improve from 4.4 per cent in FY2026 to 11 per cent in FY2024 due to improvement in the two largest verticals – BFSI and hi-tech.
Kotak’s analysis indicates that a recovery in tech spending is on the cards for BFS, especially in the US, where LTIM will be a major beneficiary, given its presence in rapidly improving sectors like capital markets and in-demand sectors like risk. Reason. and compliance and core modernization.
LTIMindTree is also a beneficiary of consolidation deals in the banking sector with clients like Absa, Kotak said.
“We expect high-tech to benefit from continued strength in the top accounts. Pressure among customers in the retail and manufacturing sectors will create headwinds to growth but will In our view, manageable,” it said.
Kotak has raised its FY2025-27E dollar revenue growth estimate by 0.5-1 percent, with a corresponding increase in EPS estimates. It now values LTMindtree stock at 28 times September 2026 earnings, compared to 26 times earlier.
