LTIMindtree aims to reach $10 billion in revenue by 2032. What the brokerage says

After IT major LTIMindtree set an ambitious target of achieving revenue of $10 billion by fiscal 2031-32, brokerages did not raise the target price on the company’s stock due to margin challenges and execution risks.

Shares of LTIMindtree on the BSE on Wednesday rose marginally to Rs. Reached 6,262: Scaling verticals, embracing AI and turbocharging its portfolio. The company highlighted a strong plan focused on BFSI and technology verticals with rapid growth in manufacturing, healthcare and life sciences.

LTIMindtree said it aims to enhance operational efficiency and client experiences with a cloud-agnostic generative AI platform and industry-specific solutions. However, the company emphasized that AI-driven productivity benefits will be passed on to customers while keeping margins neutral in the long run.

While brokerage firms reacted cautiously to the announcement, even as the company’s strategic pivots and vertical expansion into AI received praise, Nomura maintained a “reduce” rating with a target price of Rs 5,140, ​​citing reliance on double-digit revenue growth to maintain. EBIT margin in the 17-18% range. It highlighted challenges such as unrealized post-merger synergies and the need for aggressive hiring to meet potential demand surges.

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Motilal Oswal, on the other hand, has maintained a “buy” rating with a target price of Rs 7,400, indicating confidence in LTIMindtree’s capabilities in data engineering and ERP modernization. It noted that while margins are a concern, the company’s AI-driven initiatives position it well to capture emerging opportunities in BFSI and other verticals.

LTIMindtree’s sales engine improvements, including initiatives such as maximizing growth in top-100 accounts and aggressively pursuing larger deals, were another highlight. The company reported a total contract value of $2 billion from more than 45 deals over the past 18 months, indicating strong client traction.

While brokerages agree on LTIMindtree’s growth potential, execution risks and margin pressure could dictate its journey toward the $10 billion milestone.

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