LTI Mindtree Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction: Buy or Sell?
LTI Mindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. In this article, we will look at the LTI Mindtree Share Price Target 2024, 2025, 2026, 2027, 2030.
It is a subsidiary of Larsen & Toubro Infotech (LTI), which acquired a majority stake in Mindtree in 2019.
Mindtree operates in four segments: Retail, Consumer Packaged Goods and Manufacturing (RCM); Banking, Financial Services, and Insurance (BFSI); Technology, Media, and Services (TMS); and Travel and Hospitality (TH).
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LTI Mindtree Share Price Target 2024, 2025, 2026, 2027, 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | 6,963.54 | 7,176.81 | 7,070.18 |
| 2025 | 8,704.43 | 8,971.01 | 8,837.72 |
| 2026 | 10,880.53 | 11,213.77 | 11,047.15 |
| 2027 | 13,600.66 | 14,017.21 | 13,808.94 |
| 2028 | 17,000.83 | 17,521.51 | 17,261.17 |
| 2029 | 21,251.04 | 21,901.89 | 21,576.46 |
| 2030 | 26,563.80 | 27,377.36 | 26,970.58 |
| 2031 | 33,204.75 | 34,221.70 | 33,713.22 |
| 2032 | 41,505.93 | 42,777.12 | 42,141.53 |
| 2033 | 51,882.42 | 53,471.40 | 52,676.91 |
The LTI Mindtree Share Price Target for the year 2024 is Rs 7,070.18, for the Year 2025 it is Rs 8,837.72, for the Year 2026 it is Rs 11,047.15 and for the year 2030, it is Rs 26,970.58.
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LTI Mindtree Share Price Target 2024
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | 6,963.54 | 7,176.81 | 7,070.18 |
LTI Mindtree Share Price Target for 2024: In 2024, analysts projected LTI Mindtree’s share price target to range from a minimum of ₹6,963.54 to a maximum of ₹7,176.81, with an average target of ₹7,070.18.
LTI Mindtree Share Price Target 2025
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2025 | 8,704.43 | 8,971.01 | 8,837.72 |
LTI Mindtree Share Price Target for 2025: For the year 2025, analysts anticipated LTI Mindtree’s share price to be in the range of ₹8,704.43 (minimum) to ₹8,971.01 (maximum), with an average target of ₹8,837.72.
LTI Mindtree Share Price Target for 2026
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2026 | 10,880.53 | 11,213.77 | 11,047.15 |
LTI Mindtree Share Price Target for 2026: In 2026, LTI Mindtree’s share price target was estimated to have a minimum target of ₹10,880.53, a maximum target of ₹11,213.77, and an average target of ₹11,047.15.
LTI Mindtree Share Price Target for 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2030 | 26,563.80 | 27,377.36 | 26,970.58 |
LTI Mindtree Share Price Target for 2030: For the year 2030, analysts expected LTI Mindtree’s share price to fall within the bracket of ₹26,563.80 (at the lower end) to ₹27,377.36 (at the upper end), while setting an average target at ₹26,970.58.
LTI Mindtree Share Price Live Chart Today and History
LTI Mindtree Share Buy or Sell?
LTI Mindtree Financial Performance
Mindtree has shown consistent revenue growth over the past five years, with a compound annual growth rate (CAGR) of 15.7% from FY17 to FY21. Its net profit has also increased at a CAGR of 12.4% in the same period.
In FY21, Mindtree reported revenue of Rs 7,967 crore, up 2.6% year-on-year (YoY), and net profit of Rs 1,110 crore, up 76.1% YoY. Its earnings per share (EPS) was Rs 66.2, up 75.9% YoY.
Mindtree’s balance sheet is also strong, with low debt and high liquidity. As of March 31, 2021, Mindtree had total debt of Rs 25 crore and cash and cash equivalents of Rs 2,414 crore. Its debt-to-equity ratio was 0.01 and its current ratio was 3.67.
LTI Mindtree’s operating margin improved from 12.5% in FY20 to 19.6% in FY21, driven by operational efficiency, cost optimization, and higher utilization. Its return on equity (ROE) increased from 15.2% in FY20 to 24.5% in FY21.
Here is a quick look at Mindtree’s financial performance in the last 5 years:
| Financial Header | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Sales | 9,446 | 10,879 | 12,370 | 26,109 | 33,183 |
| Expenses | 7,562 | 8,849 | 9,645 | 20,860 | 27,075 |
| Operating Profit | 1,883 | 2,029 | 2,725 | 5,249 | 6,108 |
| OPM % | 20% | 19% | 22% | 20% | 18% |
| Other Income | 302 | 329 | 274 | 766 | 557 |
| Interest | 11 | 83 | 79 | 123 | 150 |
| Depreciation | 147 | 273 | 332 | 597 | 723 |
| Profit before tax | 2,028 | 2,003 | 2,588 | 5,294 | 5,792 |
| Tax % | 25% | 24% | 25% | 25% | 24% |
| Net Profit | 1,516 | 1,520 | 1,938 | 3,950 | 4,410 |
| EPS in Rs | 87.37 | 87.3 | 110.79 | 225.27 | 149.02 |
| Dividend Payout % | 32% | 32% | 36% | 41% | 40% |
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LTI Mindtree Share Price Target
LTI Mindtree share price has been on an uptrend since the LTI acquisition in 2019. It has gained over 400% from its low of Rs 970 in March 2020 to its high of Rs 4,922.75 on November 22, 2021. It has outperformed the Nifty IT index and the Nifty 50 index in the past year.
Based on the historical price data from June 27 to July 27, 2023, I have applied the following technical indicators to analyze the trend and momentum of Mindtree share price:
- Moving Average Convergence Divergence (MACD): This indicator shows the relationship between two moving averages of the price. A positive MACD indicates an upward trend and a negative MACD indicates a downward trend.
- Relative Strength Index (RSI): This indicator measures the speed and change of price movements on a scale of 0 to 100. A value above 70 indicates overbought conditions and a value below 30 indicates oversold conditions.
- Bollinger Bands: These are bands that plot two standard deviations above and below a 20-day simple moving average of the price. They indicate the volatility and range of the price movements.
The following table summarizes the values of these indicators as of July 27, 2023:
| Indicator | Value |
|---|---|
| MACD | 83.77 |
| RSI | 74.32 |
| Upper Band | 5,091.63 |
| Lower Band | 4,253.37 |
The table shows that Mindtree share price is in a strong bullish trend, as indicated by the positive MACD and the high RSI.
However, it also shows that LTI Mindtree share price is overbought and near the upper band, which suggests a possible correction or consolidation in the near term.
Based on the fundamental analysis, I have estimated the intrinsic value of Mindtree shares using the discounted cash flow (DCF) method. I have assumed the following inputs for the DCF model:
- Free cash flow (FCF) for FY21: Rs 1,292 crore
- FCF growth rate for the next 10 years: 15% (based on the historical revenue CAGR)
- Terminal FCF growth rate: 3% (based on the long-term GDP growth rate of India)
- Discount rate: 10% (based on the weighted average cost of capital of Mindtree)
The following table shows the projected FCF and the present value (PV) of Mindtree for the next 10 years:
| Year | FCF (Rs crore) | PV (Rs crore) |
|---|---|---|
| 2024 | 1,709 | 1,417 |
| 2025 | 1,965 | 1,476 |
| 2026 | 2,260 | 1,527 |
| 2027 | 2,599 | 1,570 |
| 2028 | 2,989 | 1,605 |
| 2029 | 3,438 | 1,631 |
| 2030 | 3,954 | 1,648 |
| 2031 | 4,547 | 1,656 |
| 2032 | 5,229 | 1,654 |
The terminal value of Mindtree is calculated as follows:
- Terminal value = FCF in FY31 x (1 + terminal growth rate) / (discount rate – terminal growth rate)
- Terminal value of Mindtree = Rs 5,229 crore x (1 + 0.03) / (0.1 – 0.03)
- Terminal value = Rs 89,776 crore
The PV of the terminal value is calculated as follows:
- PV of terminal value = Terminal value / (1 + discount rate) ^10
- PV of terminal value = Rs 89,776 crore / (1 + 0.1) ^10
- PV of terminal value = Rs 34,688 crore
The enterprise value (EV) of Mindtree is calculated as follows:
- EV = PV of FCF + PV of terminal value
- EV = Rs 15,535 crore + Rs 34,688 crore
- EV = Rs 50,223 crore
The equity value of Mindtree is calculated as follows:
- Equity value = EV – debt + cash
- Equity value = Rs 50,223 crore – Rs 25 crore + Rs 2,414 crore
- Equity value = Rs 52,612 crore
The intrinsic value per share of Mindtree is calculated as follows:
- Intrinsic value per share = Equity value/number of shares outstanding
- Intrinsic value per share for Mindtree Shares = Rs 52,612 crore / 16.7 crore
- Intrinsic value per share = Rs 3,150.72
Based on the DCF model, the intrinsic value per share of Mindtree is Rs 3,150.72, which is lower than the current Mindtree share price of Rs 4,922.75.
This implies that LTI Mindtree share price is overvalued at the current level and has a negative margin of safety of -36%.
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Key Risks and Challenges for LTI Mindtree Stock
Some of the risks and challenges that LTI Mindtree may face are:
- Competition from other IT players in the digital space
- Currency fluctuations and geopolitical issues that may impact its global operations
- Regulatory changes and compliance requirements in different markets
- Cybersecurity threats and data breaches that may affect its reputation and client trust
- Talent retention and acquisition in a competitive market
- Innovation and adaptation to changing customer needs and technology trends
Therefore, investors should exercise caution and due diligence before investing in Mindtree shares. They should also monitor the company’s performance and financials regularly and adjust their expectations accordingly.
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LTI Mindtree Share Price Target for 1 Week, 1 Month, and 1 Year Based on Technical Analysis
Based on the technical analysis, I have derived the following share price target for Mindtree for 1 week, 1 month, and 1 year:
| Time Frame | Share Price Target (Rs) | Assumptions |
|---|---|---|
| 1 Week | 4,800 | Based on the support level of Rs 4,800 that acted as resistance earlier and a minor pullback from the current level |
| 1 Month | 5,500 | Based on a continuation of the uptrend and a break above the Rs 5,000 level with a P/E ratio of 41 |
| 1 Year | 7,500 | Based on a CAGR of 20% from FY23 EPS estimate of Rs 181.8 and a P/E ratio of 41 |
The table shows that Mindtree share price has the potential to rise further in the short term and long term, reaching Rs 7,500 by July 2024.
However, this is based on optimistic assumptions and does not account for the risks and uncertainties that may affect the company’s performance and valuation in the future.
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Final Thoughts on LTI Mindtree Share Price Target for 2024, 2025, 2026, 2027, 2030
In conclusion, analyzing the Mindtree share price target can be a crucial component in your investment strategy. There’s no denying the impact and potential growth that Mindtree, a titan in the IT sector, offers.
But, like any investment, it’s essential to assess, forecast, and monitor market trends to predict its share price target accurately. Utilizing various financial tools and consulting with professionals can help you make more informed decisions.
Remember, investing in shares is not just about following the crowd; it’s about understanding the market dynamics and making wise decisions based on informed predictions.
Stay tuned to our website for more insights and updates on the ‘Mindtree Share Price Target’ and other investment opportunities.
Always remember, that investing is a journey, not a sprint, so take your time and do your homework before making any significant moves.
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FAQs on LTI Mindtree Share Price Target 2024, 2025, 2026, 2027, 2030
Is LTI Mindtree a good stock to buy?
Yes According to the analysis done by WeInvestSmart, Mindtree is an excellent IT stock to buy. It has given very good returns in the past to the shareholders and is expected to give good returns in the future as well.
What is LTI Mindtree Share Price Target 2024?
In 2024, analysts forecasted that LTI Mindtree’s share price target would span from a minimum of ₹6,963.54 to a maximum of ₹7,176.81, with an average target of ₹7,070.18.
What is LTI Mindtree Share Price Target 2025?
In 2025, analysts expected LTI Mindtree’s share price to fall within the range of ₹8,704.43 (at the minimum) to ₹8,971.01 (at the maximum), while setting an average target at ₹8,837.72.
What is LTI Mindtree Share Price Target 2026?
During 2026, analysts estimated LTI Mindtree’s share price target to encompass a minimum projection of ₹10,880.53, a maximum projection of ₹11,213.77, and an average target of ₹11,047.15.
What is LTI Mindtree Share Price Target 2030?
In 2030, analysts anticipated that LTI Mindtree’s share price would range from ₹26,563.80 at the lower end to ₹27,377.36 at the upper end, with an average target of ₹26,970.58.
