Brokerages were mixed on LTIMindtree after the IT company issued weak commentary for the coming quarter.

What Happened: LTIMindtree reported a 7.68% year-on-year increase in net profit to ₹1,251.60 crore. The company's revenue went up  5.92% to ₹9,432.9 crore. Meanwhile, its EBIT margin improved to 16% from 15.5% in the corresponding quarter of the previous year.

The company also declared an interim dividend of ₹20 per share. 

The IT major's active clients reached 742 in the quarter with the number of clients worth over $5 million (₹42 crore) increasing by eight from the previous year to 154 while clients worth over $20 million (₹168 crore) increased by one to 42.

Brokerage Views: Nuvama Institutional Equities kept a "buy" call with a target price of ₹7,550. The research firm said the company delivered strong results with two of its largest segments (banking and financial services and Hi-tech) reported strong growth in two consecutive quarters now. 

See Also: Wipro Q2: Net Profit Jumps 21% To ₹3,209 Cr, Beats Estimates

The company's deal wins were stable with a robust deal pipeline. Despite this, the brokerage cut the FY25 and 26 earnings per share estimates by 3.8% and 3.7% on a lower margin trajectory. The research firm said the management expects weak Q3 due to seasonal headwinds like furloughs and fewer billing days.

Investec maintained a “sell” call with a target price while increasing the target price to ₹5,600. The research firm said while Q2 was in line, it expects a weaker second half in the financial year.

The management’s commentary highlights weaker revenue growth in the second half, the brokerage firm added. Investec also said that the stock has seen a meaningful rerating without a big outperformance.

Price Action: Shares of LTIMindtree fell 3.43% to ₹6,175.25 on Friday morning.

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