LTM Limited

Technology — Information Technology Services · NSE

₹4,390.00+₹155.00 (+3.66%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

The 60-second version of LTM Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

LTM Limited engages in technology consulting and digital solutions company, provides information technology services and solutions in India, North America, Europe, and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees88,835

Annual revenue₹42,308 Cr

How does it make money?

Turns over ₹42,308 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 88,835 employees supports ₹47.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹47.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.0% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

35 analysts covering the stock expect revenue to grow about 9.4% and earnings to grow about 13.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.4%

Est. earnings growth+13.0%

Analysts35

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +27% while net margin moved -11% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+27%

Margin effect-11%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 8.4% is steady
✗ Profit CAGR of only 4.4%
✗ Profit fell 0.3% in the latest year

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.9x

3Y Median

34.0x

40 monthly readings · mean 33.2x · range 22.8x–42.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 34.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 51% above the peer median of 16.5x.

vs. its own history

Cheap

34.0x median over 40 months · -27%

vs. sector peers

Expensive

16.5x median of 4 peers · +51%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.0x

PEG

5.65

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 79% over 3 years.
High return on capital employed
ROCE of 25.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 26.6% to 20.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.8% to 25.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.19x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 50% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 9.19x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 51% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 26.6% to 20.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 17%✓ 19.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.4% CAGR
Latest reported year was 13.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹3,868 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1.30 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

24.9x

Fair

Fairly valued against the generic band

P/B Ratio

5.42x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹176.17

Profitable

Profitable on a per-share basis

ROE

21.0%

Strong

Strong capital efficiency

ROCE

25.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.19x

High

High leverage

Revenue Growth (YoY)

13.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.3%

Falling

Profits are shrinking

Dividend Yield

1.71%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4,310 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

12.5%

Good

Assets are working hard

Operating Margin

15.6%

Good

Healthy core-business profitability

Net Margin

11.5%

Good

Strong bottom-line conversion

Current Ratio

3.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4099.0 / 4364.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

65.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹33,183 Cr	₹35,517 Cr	₹38,008 Cr	₹42,308 Cr	+8.4%
EBITDA	₹6,476 Cr	₹7,089 Cr	₹6,913 Cr	₹8,155 Cr	+8.0%
EBITDA Margin	19.5%	20.0%	18.2%	19.3%	—
PAT (Net Profit)	₹4,408 Cr	₹4,582 Cr	₹4,599 Cr	₹5,018 Cr	+4.4%
EPS	₹148.83	₹154.48	₹155	₹169.13	+4.4%
ROE	26.6%	22.9%	20.3%	20.9%	—
ROCE	32.8%	28.7%	25.9%	25.4%	—
Total Debt	₹1,541 Cr	₹2,071 Cr	₹2,187 Cr	₹2,310 Cr	+14.4%
Free Cash Flow	₹2,155 Cr	₹4,826 Cr	₹3,596 Cr	₹3,868 Cr	+21.5%

🟢 Revenue has grown at 8.4% a year over 3 years.

🟢 EBITDA has grown at 8.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 19.3% over 3 years.

🟢 PAT (Net Profit) has grown at 4.4% a year over 3 years.

🟢 EPS has grown at 4.4% a year over 3 years.

🔴 ROE has fallen from 26.6% to 20.9% over 3 years (-5.7 pts).

🔴 ROCE has fallen from 32.8% to 25.4% over 3 years (-7.4 pts).

🔴 Total Debt has grown at 14.4% a year over 3 years.

🟢 Free Cash Flow has grown at 21.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37,196 Cr

Total Liabilities

₹13,088 Cr

Cash & Equivalents

₹2,331 Cr

Operating Cash Flow

₹4,799 Cr

Capex

-₹931 Cr

Shareholding (proxy)

Institutional Holding

18.5%

Insider Holding

68.6%

Corporate Actions

Next Earnings

16 Oct 2026

Dividend Rate

₹75

Ex-Dividend Date

25 May 2026

Analyst Consensus

Recommendations

20 Buy · 8 Hold · 10 Sell

Target Price (Mean)

₹4,439.18

+1.1% vs CMP

Target Range

₹3,480 – ₹6,162

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

4 mixed1 negative1 general

LTI Mindtree Share Price - Live NSE: LTM Stock Price & Chart

Upstox, 16 Oct

LTM Share Price Rises 1.82% on AI-Led Deal

HDFC Sky, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

LTIMindtree Ltd. Share Price Rise Streak and Price Action

Univest, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

LTM Q2FY27 net profit misses estimates at ₹13,980 million

scanx.trade, 16 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

LTM (BSE:540005) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why LTM Ltd Share Price is Falling

Equitymaster, 22 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Risk

MiddlingBusiness Quality · Growth · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑