LTIM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Here’s a full-spectrum analysis of LTIMindtree Ltd (LTIM)

📊 Core Financials

Profitability: ROE of 21.5% and ROCE of 27.6% are excellent — strong capital efficiency.

Quarterly PAT: Up from ₹1,128 Cr to ₹1,254 Cr — healthy 10.6% growth.

Debt Profile: Debt-to-equity ratio of 0.10 — virtually debt-free, a major strength.

Cash Flow: Not explicitly stated, but consistent profit growth and low debt suggest solid operating cash flows.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 31.8 Slightly above industry average (29.1) — priced for quality

P/B Ratio ~6.6 High — reflects premium valuation

PEG Ratio 6.10 Overvalued relative to growth — caution advised

EPS ₹159 Strong earnings base

🧠 Business Model & Competitive Edge

Digital Transformation Leader: Offers IT services across cloud, data, AI, and enterprise platforms.

Global Client Base: Strong presence in North America and Europe — diversified revenue streams.

Innovation Focus: AI-assisted solutions and strategic partnerships (e.g., telecom deals) drive differentiation.

Merger Synergies: Integration of Mindtree and LTI continues to unlock scale and cross-sell opportunities.

📈 Technical & Sentiment Indicators

RSI (39.7): Bearish — nearing oversold territory.

MACD (-42.4): Negative — weak momentum.

DMA Levels: Trading below both 50-DMA and 200-DMA — short-term downtrend.

🏁 Entry Zone & Long-Term View

Entry Zone: ₹4,850–₹5,000 — near support levels and RSI floor.

Holding Guidance: Long-term potential remains strong due to high ROE/ROCE, low debt, and global positioning. However, valuation is stretched — better to accumulate on dips or wait for technical reversal.

Analysts currently have a consensus target of around ₹5,458, suggesting modest upside from current levels

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