LTIMindtree shares nosedive after weaker-than-expected Q3 results; what should investors do?

LTIMindtree share price target: Nomura maintained a ‘reduce’ rating. The brokerage has reduced the target to Rs 4,610 from Rs 4,820. "3Q miss on most counts Commentary for 4Q subdued; no hint of significant demand revival yet Margin disappoints," the brokerage said.

LTIMindtree share price target: Nomura maintained a ‘reduce’ rating. The brokerage has reduced the target to Rs 4,610 from Rs 4,820. Image: Official Facebook page/Representational

LTIMindtree share price target, LTIMindtree Q3 results, Why LTIMindtree share price falling: LTIMindtree shares suffered heavy losses on Thursday, a day after the IT company reported a weaker-than-expected set of quarterly results. The stock fell as much as 15.9 per cent to hits the day's low at Rs 5,411.75 on NSE. The counter finished at Rs 5,602, down by Rs 673.6 or 10.73 per cent on NSE.

LTIMindtree Q3 results

After market hours on Wednesday, the company reported a 0.6 per cent quarter-on-quarter increase in consolidated net profit to Rs 1,168.9 crore for the quarter ended December 31, 2023 (Q3 FY24). The technology consulting and digital solutions company's consolidated revenue from operations increased 1.2 per cent sequentially to Rs 9,016.6 crore while revenue in dollar terms grew 0.8 per cent.

According to Zee Business research, the IT company’s quarterly net profit was estimated at Rs 1,185 crore and revenue at Rs 9,045 crore.

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LTIMindtree share price target: Here's what brokerages make of the IT firm’ Q3 numbers:

LTIMindtree
Brokerage	Rating	Target (INR)
Morgan Stanley	Equal-weight	6,400
JP Morgan	Underweight	5,400
Citi	Sell	5,300
Bernstein	Outperform	6,340
HSBC	Hold	5,160
Goldman Sachs	Buy	6,850
Nomura	Reduce	4,610
Macquarie	Outperform	7,050

Nomura maintained a ‘reduce’ rating. The brokerage has reduced the target to Rs 4,610 from Rs 4,820. "3Q miss on most counts Commentary for 4Q subdued; no hint of significant demand revival yet Margin disappoints," the brokerage said.

HSBC maintained a ‘hold’ call but reduced its target for the stock to Rs 5,160 from Rs 5,365.

"Revenue and margins missed estimates, owing to high furloughs and low discretionary spending outlook for 4Q worsened. It pulled back its margin ambition as well," said HSBC, which also lowered its growth and margin estimates for the company.

On the other hand, Bernstein maintained an ‘outperform’ rating on LTIMindtree with a target price of Rs 6,340. According to the brokerage, the company’s revenue and margin fell short of its estimates.

"Reported a weak quarter 4Q outlook is weak as it expects further furloughs. Valuations at 33.2x NTM P/E remain expensive," Bernstein said. Macquarie also maintained an ‘outperform’ rating on LTIMindtree, with a target price of Rs 7,050, translating to an upside of 12.3 per cent from the previous close.

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