LTI Mindtree Share Price Target for 2023, 2024, 2025, 2030 and Long Term

This post was most recently updated on September 2nd, 2023

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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 LTI Mindtree Share Price Target for 2023, 2024, 2025, 2030, and Long Term.

Mindtree Share Price Target
Mindtree Share Price Target

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 for 2023, 2024, 2025, 2030 and Long Term

YearMinimum Mindtree Share Price TargetMaximum Mindtree Share Price Target
Mindtree Share Price Target for 2023, 2024, 2025, 2030, and Long Term

The LTI Mindtree Share Price Target for the year 2023 is Rs 4961, for the Year 2024 it is Rs 5954, for the Year 2025 it is Rs 7144 and for the year 2030, it is Rs 17777.

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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 HeaderMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Operating Profit1,8832,0292,7255,2496,108
OPM %20%19%22%20%18%
Other Income302329274766557
Profit before tax2,0282,0032,5885,2945,792
Tax %25%24%25%25%24%
Net Profit1,5161,5201,9383,9504,410
EPS in Rs87.3787.3110.79225.27149.02
Dividend Payout %32%32%36%41%40%
LTI Mindtree’s financial performance in the last 5 years

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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:

Upper Band5,091.63
Lower Band4,253.37
LTI Mindtree Technical Indicators

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:

YearFCF (Rs crore)PV (Rs crore)
Projected FCF and the present value (PV) of LTI Mindtree for the next 10 years

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.

Consider reading: Top 10 Best IT Stocks in India

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 FrameShare Price Target (Rs)Assumptions
1 Week4,800Based on the support level of Rs 4,800 that acted as resistance earlier and a minor pullback from the current level
1 Month5,500Based on a continuation of the uptrend and a break above the Rs 5,000 level with a P/E ratio of 41
1 Year7,500Based on a CAGR of 20% from FY23 EPS estimate of Rs 181.8 and a P/E ratio of 41
Mindtree Share Price Target for 1 Week, 1 Month, and 1 Year

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

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

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 the target price of LTI Mindtree in 2023?

The minimum Mindtree share target price in 2023 is Rs 4725 and the maximum target price is Rs 4921.

What is the LTI Mindtree Share Price Target 2025?

The LTI Mindtree Share Price Target 2025 is estimated to be between INR 6800 and INR 7200 based on our analysis.

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