Driven by a culture of excellence and customer-centricity, LTImintree Ltd has established itself as a prominent player in the competitive IT services industry. Our dedication to collaboration and innovation sets us apart, enabling us to deliver superior results and build lasting partnerships.
As a component of India’s benchmark index, the Nifty 50, LTImintree exemplifies integrity, reliability, and leadership in the global marketplace. LTImintree Ltd committed to driving positive change and shaping the future of technology through innovative solutions and unwavering dedication to customer success.
Table of Contents
About LTIMindtree Ltd
LTIMindtree Limited is a big tech company from India that helps businesses with their IT needs. They’re based in Mumbai and came to be when Larsen & Toubro Infotech (LTI) joined forces with Mindtree. They’re really good at digital transformation and coming up with new ideas. They use their skills in things like cloud computing, data analytics, AI, and IoT to help their clients solve tough problems and grow their businesses.
LTIMintree works with all kinds of companies in different industries and gives them tailored solutions. They’re all about teamwork and making sure their customers are happy, which makes them stand out in the crowded IT world. You can find LTIMintree on the National Stock Exchange (NSE), and they’re a big deal in India’s stock market as part of the nifty 50, which is like India’s main stock index.
Subsidiaries of LTIMindtree Ltd
Mindtree: Mindtree is a key subsidiary of LTIMindtree Ltd. it was founded in 1999 and has since become a prominent digital transformation and technology services company. Within 17 countries, Mintree operate with diverse client base. It holds prestigious recognitions, including the Microsoft Gold Partner certification, demonstrating its commitment to technological excellence. Mindtree’s expertise in cloud computing, data analytics, and AI has positioned it as a leader in the industry, contributing significantly to LTIMindtree Ltd.’s offerings.
Syncordis S.A.: Syncordis S.A. specialises in Temenos core banking software and offers valuable additional services. As a Temenos Platinum Services Partner, it represents the highest level of partnership with Temenos, displaying its obligation to greatness. With a global presence, including offices in Europe, Asia, and the Middle East, Syncordis S.A. serves clients worldwide. It is at the very front of giving arrangements for core banking transformation, further enhancing LTIMindtree Ltd.’s capabilities and global reach.
Share Holding Pattern
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 68.6%
- FII (Foreign Institutional Investor) Shareholding: 7.86%
- DII (Domestic Institutional Investor) Shareholding: 13.58%
- Public Shareholding: 9.95%
- Others Shareholding: 0.01%
Fundament analysis of LTIMindtree Ltd will help to determine the intrinsic value on the basis of company’s financial performance, ratios such as earning, assets, cash flow. Some of the Key Financial ratios bellow to analyse the fundamental for LTIMindtree Ltd.
Ratio | March 2023 | March 2022 | March 2021 |
Profitability Ratio | |||
Gross Profit Margin | 37.08% | 38.09% | 39.94% |
Net Profit Margin | 13.28% | 14.66% | 15.65% |
Return on Equity (ROE) | 26.57% | 26.06% | 26.51% |
Liquidity Ratio | |||
Current Ratio | 3.13 | 3.04 | 3.09 |
Quick Ratio (Acid-Test Ratio) | 3.13 | 0 | 0 |
Solvency Ratio | |||
Debt to Equity Ratio | 0.0213 | 0.082 | 0.0220 |
Interest Coverage Ratio | 39.49 | 43.55 | 33.85 |
Efficient Ratio | |||
Inventory Turnover Ratio | 12654.48 | 0 | 0 |
Account Receivable Turnover Ratio | 6.60 | 5.53 | 5.03 |
Valuation Ratio | |||
Price to earning Ratio (P/E) | 2.31 | 2.58 | 1.36 |
Price to Book Ratio (P/B) | 8.48 | 12.24 | 9.70 |
Growth Ratio | |||
Earning per Share (EPS) Growth | 31.93 | 46.99 | 36.59 |
Revenue | 34,963.30 | 32,476.20 | 14,995.50 |
This table presents key financial ratios for analysing the fundamental performance of LTIMindtree Ltd over the past three years.
Profitability Ratios
Gross Profit Margin:
Shows the percentage of revenue remaining after deducting the cost of goods sold. It has seen a decline from 39.94% in 2021 to 37.08% in 2023.
Net Profit Margin:
Indicates the percentage of revenue remaining as net profit after deducting all expenses. There’s a downward trend from 15.65% in 2021 to 13.28% in 2023.
Return on Equity (ROE):
Demonstrates the efficiency of utilizing shareholders’ equity to generate profit. It shows slight fluctuations but remains relatively stable.
Liquidity Ratios
Current Ratio:
Measures the company’s ability to cover short-term liabilities with its short-term assets. It has seen minor fluctuations but remains above 3, indicating good liquidity.
Quick Ratio:
Unfortunately, data for this ratio is missing for 2022 and 2021, which could indicate a lack of quick assets or require further clarification.
Solvency Ratios
Debt to Equity Ratio:
Shows the proportion of debt relative to shareholders’ equity. There’s a significant decrease from 0.082 in 2022 to 0.0213 in 2023, indicating reduced reliance on debt.
Interest Coverage Ratio:
Reflects the company’s ability to cover interest expenses with its earnings. It shows improvement over the years, indicating better financial health.
Efficiency Ratios
Inventory Turnover Ratio:
Indicates how efficiently the company manages its inventory. The extremely high value in 2023 suggests very efficient inventory turnover.
Account Receivable Turnover Ratio:
Shows how efficiently the company collects payments from its customers. It has seen improvement over the years.
Valuation Ratios
Price to Earnings Ratio (P/E):
Compares the company’s stock price to its earnings per share. There’s a decrease from 2.58 in 2022 to 2.31 in 2023, indicating either decreased market confidence or improved earnings.
Price to Book Ratio (P/B):
Compares the company’s market value to its book value. It has fluctuated but generally remained at relatively high levels.
Growth Ratios
Earnings per Share (EPS) Growth:
Indicates the growth rate of earnings per share over time. It shows positive growth trends over the years, with fluctuations but generally increasing values.
Revenue Growth:
The company has experienced steady revenue growth, with revenue increasing from 14,995.50 in March 2021 to 34,963.30 in March 2023. This consistent growth trajectory LTImintree Ltd ability to expand its top-line performance and capture market opportunities.
Technical analysis of LTIMindtree Ltd
Technical analysis of LTIMindtree Ltd involves evaluating price movements and trading volumes to forecast future price movements. This analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for LTIMindtree Ltd. The main goal of technical analysis of LTIMindtree Ltd share price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions.
Price Action
Price action and price level of LTIMindtree limited | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Morning Star on 19th April | Bullish Inside Bar on 22nd April | Hammer candle in April |
Chart Pattern | Double Bottom Pattern | Triangular Pattern | Triangular Pattern |
Price Support Level | 4600 | 4000-4100 | 3800-4000 |
Price Level | 4800 is Current price | 52 weeks High 6442 | 52 weeks low 4153 |
The table provides an analysis of the price action and price levels of LTIMindtree Ltd share across different timeframes
In daily timeframe, A Morning Star pattern was identified in this stock on April 19th. This pattern suggests a potential reversal from a downtrend to an uptrend. It consists of three candles, a long bearish candle, a small-bodied candle (could be bullish or bearish) that opens lower than the previous close, and a bullish candle that closes beyond the midpoint of the first candle. By analysing the price action pattern, there is a Double Bottom Pattern, which indicates a significant level of support around 4600 and much above from 52 weeks low.
This pattern forms when the price reaches a low point, then rallies, then falls back to a similar low before rallying again and made a symbol like “w”. this pattern has successfully completed by giving a strong breakout of 4750 and formed strong green candle. It suggests a potential trend reversal from bearish to bullish.
In weekly timeframe, LTIMindtree Ltd created a Bullish Inside Bar on April 22nd. This pattern is characterized by a smaller range within the previous candle’s range. It suggests consolidation or indecision in the market before a potential breakout. From the analysis of candlestick chart to this stock, Triangular Pattern was observed with strong support level between 4000-4100 range.
As with the weekly chart, this stock showing a long consolidation from May 2022. Triangular pattern occurs when the highs and lows of price action converge toward a point, forming a triangle shape. It often precedes a significant price movement and for this stock it has high chance to breakout to upward.
In Monthly Timeframe, LTIMindtree Ltd created a Hammer candle after a strong deep (4591.50) in April. This pattern forms when the price opens and trades significantly lower, but then rallies to close near its high. It suggests that buyers in this stock were able to overcome selling pressure, potentially signalling a bullish reversal and can make a potential buying volume in future. By analysisng the monthly candle, Triangular Pattern was identified with the great support between 3800-4000 range and high chance to reverse from this level.
Indicators Use for Technical Analysis
Moving Average (MA):
Moving Average price level of LTIMindtree limited | |||
Moving Average | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
200 Simple Moving Average (SMA) | 5337 | 4722 | 0 |
200 Exponential Moving Average (EMA) | 5243 | 4485 | 0 |
In daily timeframe, The average price over the last 200 days is 5337 which is much deviated from current price. But have the lots of chance to move towards average price. The exponential moving average over the last 200 days in the daily timeframe is 5243. Unlike the simple moving average, the exponential moving average gives more weight to recent prices, potentially making it more responsive to recent price changes.
In the weekly timeframe, the 200-day simple moving average is 4722 and exponential moving average is 4485. Both SMA and EMA is showing the potential support level for LTIMindtree stock. This moving averages also showing the correction of this stock price may be completed in daily as well as in larger timeframe and preparing for a bullish momentum for future.
Relative Strength Index (RSI):
Relative Strength Index (RSI) of LTIMindtree limited | |||
| Daily | Weekly | Monthly |
Relative Strength Index (RSI) | 42.4 | 37.5 | 48.3 |
RSI is a momentum oscillator that measures the speed and change of price movements. In the daily timeframe, the RSI stands at 42.4. RSI above 30 shows the stock has the potentiality for bullish rally. In daily RSI there has a bullish divergent in LTIMindtree limited. However, the weekly and monthly RSI value still below 50. But we can as surly say that the strength is getting increase in shorter timeframe. There has huge probability to strength increase in higher time frame in future.
Data Analysis
Open Interest Data of LTIMindtree limited (on the basis of 26th April Data) | |||||
Out of The Money (OTM) | At The Money (ATM) | Out of The Money (OTM) | |||
Strike Price of LTIMindtree | 4600 | 4700 | 4800 | 4900 | 5000 |
Call Open Interest | 28800 (in cr.) | 74100(in cr.) | 150900(in cr.) | 57300(in cr.) | 197700(in cr.) |
Put Open Interest | 70500(in cr.) | 106050(in cr.) | 108900(in cr.) | 39150(in cr.) | 66900(in cr.) |
By analysing the Open Interest data traders or investors can determine the market sentiment and participants psychology for future. In LTIMindtree Ltd, huge Open Interest has been created by option writers at ATM. More than 150900 cr. Call selling has been done. In the same way at the Strike price of 4800, there are lots of Put selling (Approximately 108900).
But interestingly Out of The Money (OTM) (@5000) option writings are more attractive than ATM. On the basis of call writers we can assume, price at least can go up to 5000 and above. if there are possibility to cover these short, price can rally more in future. Put writings at lower price is showing the good support level in LTIMindtree Ltd.
Conclusion
In Conclusion, LTIMindtree Ltd’s strategic initiatives, strong financial performance, and technical indicators position it favourably for future growth and success in the dynamic IT services industry. Investors may consider LTIMindtree as a promising investment opportunity given its track record of excellence and commitment to driving positive change in the technology landscape.
FAQs
- What makes LTImintree Ltd stand out in the IT services industry?
LTImintree distinguishes itself through a culture of excellence and customer-centricity, fostering lasting partnerships and delivering superior results.
- What is the background of LTImintree Ltd?
LTImintree Ltd is an Indian multinational IT services and consulting company formed through the merger of Larsen & Toubro Infotech (LTI) and Mindtree. It’s headquartered in Mumbai.
- What are LTImintree’s areas of expertise?
LTImintree specializes in digital transformation and innovation, leveraging skills in cloud computing, data analytics, AI, and IoT to tackle complex business challenges and drive growth.
- What subsidiaries does LTImintree Ltd own?
LTImintree’s key subsidiaries include Mindtree, renowned for digital transformation, and Syncordis S.A., which specializes in Temenos core banking software and services.
- What is the shareholding pattern of LTImintree Ltd?
LTImintree’s shareholding pattern comprises 68.6% promoter shareholding, 7.86% FII shareholding, 13.58% DII shareholding, 9.95% public shareholding, and 0.01% others shareholding.
- How does fundamental analysis assess LTImintree Ltd’s performance?
Fundamental analysis of LTImintree considers key financial ratios like profitability, liquidity, solvency, efficiency, valuation, and growth to evaluate its financial health and intrinsic value.
- What does technical analysis reveal about LTImintree Ltd’s share price?
Technical analysis assesses LTImintree’s share price movements, identifying patterns like Morning Star, Bullish Inside Bar, and Hammer candles across different timeframes to forecast potential trends.
- What indicators are used in technical analysis for LTImintree Ltd?
Technical analysis employs indicators like Moving Averages and Relative Strength Index (RSI) to gauge price momentum and market sentiment, aiding in predicting future price movements.
- What insights can be drawn from LTImintree Ltd’s open interest data?
LTImintree’s open interest data reveals market sentiment and participants’ psychology, with significant option writing observed at different strike prices, indicating potential price levels and support/resistance zones.
- Why might investors consider LTImintree Ltd as an investment opportunity?
LTImintree’s strategic initiatives, strong financial performance, and positive technical indicators position it favorably for future growth, making it a promising investment opportunity in the dynamic IT services industry.
