LTIMindtree Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹1,59,548 crore, PE ratio of 35.0, debt-to-equity ratio of 0.10, and return on equity of 25.0%. These figures reflect the company’s financial health and current market valuation.
Content:
- LTIMindtree Ltd Overview
- LTIMindtree Financial Results
- LTIMindtree Financial Analysis
- LTIMindtree Company Metrics
- LTIMindtree Stock Performance
- LTIMindtree Peer Comparison
- LTIMindtree Shareholding Pattern
- LTIMindtree History
- How To Invest In LTIMindtree Ltd Share?
- LTIMindtree Limited Fundamental Analysis – FAQs
LTIMindtree Ltd Overview
LTIMindtree Ltd is a leading IT services and consulting firm in India, known for its expertise in digital transformation, technology consulting, and IT solutions. It serves global clients across various sectors, leveraging innovation and technology to drive business growth.
The company has a market capitalisation of ₹1,59,548 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 16.4% below its 52-week high and 19.4% above its 52-week low.
LTIMindtree Financial Results
LTIMindtree Ltd financial results for FY24 show considerable improvement from FY22. Sales increased to ₹35,517 crore from ₹15,669 crore, and net profit rose to ₹4,585 crore from ₹2,299 crore.
- Revenue Trend: LTIMindtree Ltd sales surged from ₹15,669 crore in FY22 to ₹35,517 crore in FY24, with FY23 sales at ₹33,183 crore, indicating robust growth.
- Equity and Liabilities: Although specific equity and liabilities data are not provided, the rising net profit from ₹2,299 crore in FY22 to ₹4,585 crore in FY24 suggests enhanced financial stability.
- Profitability: Operating profit improved from ₹3,058 crore in FY22 to ₹6,387 crore in FY24, with OPM% stable at 18% in FY24, compared to 20% in FY22.
- Earnings Per Share (EPS): EPS grew from ₹131.19 in FY22 to ₹154.85 in FY24, reflecting increased shareholder value. FY23 EPS was ₹149.07, highlighting significant progress over the two years.
- Return on Net Worth (RoNW): RoNW details are not provided, but the rising net profit from ₹2,299 crore in FY22 to ₹4,585 crore in FY24 indicates better returns on equity.
- Financial Position: LTIMindtree Ltd financial position improved, with sales and net profit rising from ₹15,669 crore and ₹2,299 crore in FY22 to ₹35,517 crore and ₹4,585 crore in FY24.
LTIMindtree Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 35,517 | 33,183 | 15,669 |
| Expenses | 29,130 | 27,075 | 12,610 |
| Operating Profit | 6,387 | 6,108 | 3,058 |
| OPM % | 18 | 18 | 20 |
| Other Income | 701.9 | 556.9 | 466.7 |
| EBITDA | 7,089 | 6,665 | 3,525 |
| Interest | 221.7 | 150.4 | 72.8 |
| Depreciation | 818.9 | 722.7 | 354.9 |
| Profit Before Tax | 6,049 | 5,792 | 3,097 |
| Tax % | 24.21 | 23.85 | 25.79 |
| Net Profit | 4,585 | 4,410 | 2,299 |
| EPS | 154.85 | 149.07 | 131.19 |
| Dividend Payout % | 41.98 | 40.25 | 41.92 |
*All values in ₹ Crores
LTIMindtree Company Metrics
LTIMindtree’s market cap stands at ₹1,59,548 crore with a current stock price of ₹5,387. The stock has a P/E ratio of 35.0, a book value of ₹676, and a dividend yield of 1.22%. Its ROE is 25.0%, and the debt-to-equity ratio is 0.10.
- Market Cap: LTIMindtree has a substantial market capitalization of ₹1,59,548 crore, reflecting its significant market presence and investor confidence in the company’s growth potential.
- Book Value: The book value per share is ₹676, indicating the net asset value attributed to each share, useful for assessing the company’s intrinsic value and financial stability.
- Face Value: The face value of LTIMindtree’s shares is ₹1.00, representing the nominal value of each share as recorded in the company’s books.
- Turnover: The asset turnover ratio is 1.39, showing the company’s efficiency in utilizing its assets to generate revenue, indicating effective operational performance.
- PE Ratio: With a price-to-earnings ratio of 35.0, LTIMindtree’s stock is priced at a premium relative to its earnings, reflecting high investor expectations for future growth.
- Debt: LTIMindtree’s debt stands at ₹2,071 crore, a manageable level given its equity and strong financial metrics, indicating sound debt management.
- ROE: The return on equity (ROE) is 25.0%, showcasing the company’s ability to generate profit from shareholders’ equity, reflecting effective management and profitability.
- EBITDA Margin: The EV/EBITDA ratio is 22.2, highlighting the company’s valuation relative to its earnings before interest, taxes, depreciation, and amortization, useful for evaluating operational efficiency.
- Dividend Yield: The dividend yield is 1.22%, providing investors with a modest return on their investment in the form of dividends, while also reflecting the company’s profitability and commitment to shareholder returns.
LTIMindtree Stock Performance
The table shows LTIMindtree’s return on investment over various periods: 27% over 5 years, 4% over 3 years, and 4% over 1 year. This indicates strong long-term growth, with consistent but lower short-term returns.
| Period | Return on Investment (%) |
| 5 Years | 27% |
| 3 Years | 4% |
| 1 Year | 4% |
Example:
If an investor put ₹1,00,000 into LTIMindtree five years ago, the return of 27% would yield ₹27,000 in profit. The total investment value would now be ₹1,27,000.
An investment of ₹1,00,000 over three years would earn a 4% return, resulting in a profit of ₹4,000. The total value of the investment would be ₹1,04,000.
For a one-year investment of ₹1,00,000, a 4% return would generate ₹4,000 in profit, making the total investment value ₹1,04,000.
LTIMindtree Peer Comparison
LTIMindtree, with a market cap of ₹160,673.35 Crores, shows solid performance with a PEG ratio of 1.42 and a 1-year return of 4.51%. Despite modest returns, its ROCE and growth metrics are competitive compared to peers like TCS and Infosys.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % | ROCE % | Div Yld % |
| 1 | TCS | 4295.25 | 1554781.43 | 3.98 | 10.11 | 24.51 | 64.28 | 1.31 |
| 2 | Infosys | 1823.25 | 757292.45 | 2.53 | 25.45 | 30.83 | 39.99 | 2.12 |
| 3 | HCL Technologies | 1626.15 | 441282.65 | 2.9 | 20.62 | 38.87 | 29.6 | 3.23 |
| 4 | Wipro | 495.15 | 259039.75 | 5.97 | 6.61 | 19.27 | 16.93 | 0.2 |
| 5 | LTIMindtree | 5427.55 | 160673.35 | 1.42 | 13.76 | 4.51 | 31.17 | 1.22 |
| 6 | Tech Mahindra | 1524.4 | 149149.59 | -5.27 | 16.55 | 24.98 | 11.88 | 2.64 |
| 7 | Persistent Sys | 4764.1 | 73404.98 | 2.33 | 35.02 | 92.95 | 29.17 | 0.55 |
LTIMindtree Shareholding Pattern
The shareholding pattern of LTIMindtree reveals a diverse ownership distribution. Promoters held 68.6% on June 24, slightly down from 68.64% on Dec 23. FIIs have reduced their stake to 7.28%, while DIIs increased their share to 14.22%. Retail and others account for 9.91%, reflecting shifting investor interests.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 68.6 | 68.6 | 68.64 | 68.66 |
| FII | 7.28 | 7.86 | 8.65 | 8.11 |
| DII | 14.22 | 13.58 | 12.93 | 12.95 |
| Retail & others | 9.91 | 9.95 | 9.78 | 10.27 |
*All values in %
LTIMindtree History
LTIMindtree Ltd was incorporated as L&T Information Technology Limited in 1996 and received its business commencement certificate in 1997. It was rebranded to Larsen & Toubro Infotech Limited in 2001 to better reflect its global ambitions and strength.
Over the years, LTIMindtree made several strategic acquisitions, including GDA USA in 2007 and Citigroup’s fund services business in 2011. It expanded its presence in South Africa in 2008 and achieved high maturity levels in CMMI appraisals.
In 2022, the company merged with Mindtree, creating a major IT services player under the new name LTIMindtree Ltd. This merger aimed to enhance its market position and service capabilities.
How To Invest In LTIMindtree Ltd Share?
Investing in LTIMindtree Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for LTIMindtree Ltd shares and place your buy order.
LTIMindtree Limited Fundamental Analysis – FAQs
LTIMindtree Ltd’s fundamental analysis reveals a market capitalization of ₹1,59,548 crore, a PE ratio of 35.0, a debt-to-equity ratio of 0.10, and a return on equity of 25.0%, indicating strong financial health and market valuation.
The market cap of LTIMindtree Ltd as of August 12, 2024, is approximately ₹1,59,548 crore. This value reflects the company’s strong market position in the Indian cement industry.
LTIMindtree Limited is a global technology consulting and digital solutions company formed by the merger of Larsen & Toubro Infotech (LTI) and Mindtree. It provides IT services, including cloud computing, data analytics, and application development, to various industries.
LTIMindtree is owned by Larsen & Toubro (L&T), a major Indian multinational conglomerate. L&T holds a significant stake in the company, having merged its subsidiaries, LTI and Mindtree, to create LTIMindtree, a leading IT services provider.
The main shareholders of LTIMindtree include its parent company, Larsen & Toubro (L&T), which holds a majority stake. Other key shareholders are institutional investors, such as mutual funds, foreign portfolio investors, and retail investors who hold smaller stakes.
LTIMindtree operates in the information technology (IT) industry. It specializes in providing IT services, digital transformation solutions, and consulting services across various sectors, including banking, insurance, manufacturing, and retail, focusing on cloud, analytics, and application development.
To invest in LTIMindtree Ltd shares, open a brokerage account with a registered stockbroker, deposit funds, and place a buy order for LTIMindtree shares through the stock exchange. Ensure you research and monitor the company’s performance before investing.
Determining if LTIMindtree is overvalued or undervalued requires analyzing its financial metrics, market conditions, and valuation ratios such as the PE ratio. Compare these with industry peers and historical data to assess if the stock’s current price reflects its true value.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
