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Investing.com - DAM Capital downgraded LTIMindtree Ltd (NSE:LTIM) from Buy to Neutral with a price target of INR6,120.00 on Friday.
The downgrade comes despite LTIMindtree’s strong recent performance, with the stock rising 20% over the past six months compared to a relatively flat NIFTY IT index during the same period.
DAM Capital analyst Anmol Garg acknowledged the new CEO’s "solid initial execution," noting the company has secured multiple large deals and improved operational discipline, which drove a 200 basis point margin recovery from the third-quarter fiscal year 2025 lows.
The firm believes these positive developments are now fully reflected in LTIMindtree’s valuation, with the stock trading at approximately 30 times FY27 earnings per share (2.8x PEG ratio).
DAM Capital expressed concern that the current multiple assumes "a meaningful growth acceleration from the FY26 exit rate," which may be difficult to achieve given "structural risks associated with the top two clients," and values the stock at 30 times FY27 earnings per share.
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