Earnings Release: Here's Why Analysts Cut Their LTIMindtree Limited (NSE:LTIM) Price Target To ₹5,035

Investors in LTIMindtree Limited (NSE:LTIM) had a good week, as its shares rose 2.7% to close at ₹4,788 following the release of its full-year results. It was a credible result overall, with revenues of ₹355b and statutory earnings per share of ₹154 both in line with analyst estimates, showing that LTIMindtree is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for LTIMindtree

Taking into account the latest results, the most recent consensus for LTIMindtree from 37 analysts is for revenues of ₹377.4b in 2025. If met, it would imply a credible 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 10.0% to ₹170. In the lead-up to this report, the analysts had been modelling revenues of ₹385.6b and earnings per share (EPS) of ₹178 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.6% to ₹5,035. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic LTIMindtree analyst has a price target of ₹6,650 per share, while the most pessimistic values it at ₹3,840. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that LTIMindtree's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.2% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than LTIMindtree.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LTIMindtree's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple LTIMindtree analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that LTIMindtree is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.