LTIMindtree: Can The Premium Valued Company Sustain Its Valuations Despite Disappointing Q4?
LTIMindtree reported results yesterday, Disappointment was seen from the Q4 results of the IT Giant, Can it sustain itself in the market on such valuations after results, Find out.
The IT Giant, LTIMindtree has reported a fall of around 2.3% today in its share price after upset Q4 FY 2023-24 results from the company yesterday. Analysts have also trimmed their targets for the IT Giant after disappointing Q4 results which have missed the estimations of the street.
Q4 FY 2023-24 Results
The IT Company reported a Net Profit of Rs.1100 crores for the Q4 FY 2023-24 period down by 1% from Q4 FY 2022-23, On the Top Line Basis revenue also grew marginally by 2.3% and stood at Rs.8893 crores.
EBITDA for the Q4 FY 2023-24 stood at Rs.1308.7 crores which was also below estimates and EBITDA margins declined to 14.7% for Q4 FY 2023-24.
The board has also recommended a dividend of Rs.45 per share.
| Key Metrics | Figures |
|---|---|
| Revenue | Rs.8893 crores |
| EBITDA | Rs.1308 crores |
| EBITDA Margins | 14.7% |
| Net Profit After Tax | Rs.1100 crores |
.
Brokerages After Q4 Results
After Disappointment in Q4 Results, Brokerages have negative sentiments for LTIMindtree,
Citi says that the valuations for LTIMindtree remain premium and they view it as the most expensive Large Cap. IT stock and have reduced their target price to Rs.4165 a piece from Rs.4725 earlier. Nomura has lowered their projected FY 24-26 EPS by 4-8% for LTIMindtree as they believe that growth acceleration is unlikely in FY25 and JP Morgan has reduced the Revenue Target by 1-3% and margins by 30-40 basis points. Motilal Oswal said that LTIMindtree has posted weak Q4 results and the near-term outlook remains bleak according to them, The growth was hit by two project cancellations under the BFSI Sector, they further added.
Overall most of the brokerages have placed a negative view after the below estimate results from LTIMindtree and the near-term outlook does not look so good according to them.
Conclusion
The stock has corrected by 7% in the last 1 month, due to sequentially weak quarterly updates. Analysts also expect that The growth outlook for the near term will not be much accelerated, and revenue and Eps growth may also be impacted. The stock currently trades at Rs.4615 a piece down by 2.3% today.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.