LTM Ltd
LTM Ltd
Information Technology F&OLarsen & Toubro Infotech Ltd offers extensive range of IT services like application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions, and platform-based solutions to the clients in diverse industries.[1]
LTM Ltd offers a solid ROE track record of 23% over 3 years and healthy dividend payout of 42.7%, but the stock has declined 28% over the past year and trades at a PE of 22.8x which leaves limited margin of safety given single-digit recent sales growth of 8% CAGR over 3 years.
Key Fundamentals
LargecapComputer Software & ConsultingInformation TechnologyTechnical Indicators
Key Insights
Strengths
3- Company has a good return on equity (ROE) track record: 3 Years ROE 23.1%
- Company has been maintaining a healthy dividend payout of 42.7%
- Company's working capital requirements have reduced from 33.8 days to 26.4 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoLTM Ltd offers a solid ROE track record of 23% over 3 years and healthy dividend payout of 42.7%, but the stock has declined 28% over the past year and trades at a PE of 22.8x which leaves limited margin of safety given single-digit recent sales growth of 8% CAGR over 3 years.
- Consistent return on equity of 23% over 3 years and 26% over 5 years, indicating efficient capital allocation
- Healthy dividend payout ratio of 42.7% with a current dividend yield of 1.96%, providing income support to shareholders
- Long-term compounded profit growth of 20% over 10 years demonstrates sustained earnings power
- TTM profit growth of 18% shows acceleration compared to 3-year CAGR of 7%, indicating improving profitability trajectory
- Working capital days reduced from 33.8 to 26.4 days, reflecting better operational efficiency and cash conversion
- Long-term sales CAGR of 22% over 10 years shows the company has scaled revenue meaningfully over time
- Majority analyst consensus is positive with 48.65% recommending Buy (18 out of 37 analysts)
- Stock price has declined 28% over the past 1 year, reflecting significant negative momentum and possible structural concerns
- 3-year stock CAGR of -8% indicates sustained value destruction for shareholders over a meaningful period
- 3-year compounded sales growth has decelerated sharply to 8% from the 10-year average of 22%, signaling a slowdown in topline momentum
- 3-year compounded profit growth of only 7% is well below the 10-year average of 20%, suggesting margin or growth headwinds
- PE ratio of 22.8x appears elevated relative to the recent 3-year profit CAGR of just 7%, resulting in a PEG ratio above 3x
- 16.22% of analysts (6 out of 37) have a Sell rating, indicating meaningful skepticism among the Street
- Price-to-book ratio of 4.73x is on the higher side and leaves limited downside protection in a market correction
- 5-year stock CAGR of -2% shows that even over a longer horizon, the stock has failed to generate positive returns for investors
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- Jefferies warns 17% downside Jun 3
Jefferies maintained Underperform rating with ₹3,500 target, noting AI-led disruption could deflate core IT revenues by 25% and that doubling revenues by 2031 with 200bps margin expansion seems very optimistic.
- Stock crashes 8%, worst in 4 years Jun 3
LTM shares fell 8% intraday to ₹3,993 on NSE, the biggest single-day fall since January 2024, amid broad IT sector selling on AI disruption fears.
- Down 21.88% YoY, fifth straight fall May 26
Stock fell for fifth consecutive session trading at ₹3,990, underperforming Nifty by 19.74% over the past year. Shares have declined 34% YTD, worst among India's top 10 IT firms.
- EBIT margins contracted to 15.1% Jun 3
Q4FY26 EBIT margins contracted to 15.1% from 16.1% in the previous quarter, with constant currency growth at only 1.4% despite 4.7% sequential revenue rise to ₹11,291.7 crore.
- Leader in Oracle Cloud ERP Jun 19
LTM recognized as a Leader in Avasant's Oracle Cloud ERP Services 2026 RadarView for driving transformation for global enterprises.
- ₹53 dividend, directors appointed Jun 1
LTM's 30th AGM approved a ₹53 final dividend and appointed key directors with all resolutions passing with requisite majority.
- Managed SSE launch with Cisco Jun 3
LTM launched a Managed Secure Service Edge solution with Cisco at Cisco Live 2026, combining Cisco Secure Access with LTM's AI-led managed services.
- AI1000 trains 1,000+ engineers Jun 12
LTM launched AI1000 initiative with a dedicated Center of Excellence and four-stage talent model to develop 1,000+ AI-certified engineers, building on 24,000 AI-trained associates and 15,000 external AI certifications.
- BlueVerse Currency outcome-based pricing Jun 10
LTM introduced BlueVerse Currency, an AI-linked commercial model pricing work by outcomes rather than effort, applicable across Agentic Engineering, Business AI, and ADM engagements.
- $585M Paramount deal, $186M acquisition May 26
CEO Lambu secured LTM's largest deal ever — a six-year $585M contract from Paramount Global — and announced $186M Randstad acquisition adding 2,700 employees and $500M+ annual revenues.
- Motilal Oswal targets ₹5,400 (25% upside) Jun 3
Motilal Oswal retained Buy rating with ₹5,400 target, citing 14% EPS CAGR over two years, strong deal wins, and productivity pain for key accounts being behind.
- Prabhudas Lilladher holds at ₹4,560 Jun 1
Prabhudas Lilladher maintained ₹4,560 target at 20x FY28E EPS, acknowledging LTM is at an inflection point with ambitious 15% USD revenue CAGR target through FY31.
- BlueVerse for Databricks launched Jun 17
LTM launched BlueVerse for Databricks to accelerate AI-driven data monetization across manufacturing, BFSI, media, and retail sectors, and was named Databricks 2026 Global COE Partner of the Year.
- BlueVerse for iRun AI services Jun 15
LTM launched BlueVerse for iRun targeting 60-70% automated resolution and 40-60% faster incident closure, shifting from headcount-based delivery to agentic AI platform-led managed services.
- Joins Athena Coalition for AI security Jun 24
LTM joined the Athena Coalition to strengthen open source software security in the AI era, positioning itself in collaborative cybersecurity standards development.
- Promoter holds 68.52% unencumbered Jun 12
Larsen & Toubro declared no encumbrance on 20.32 crore equity shares representing 68.52% stake in LTM Limited.
- SSP Group partnership for IT modernization May 26
LTM partnered with SSP Group to deliver AI-powered IT infrastructure modernization leveraging the BlueVerse ecosystem for SSP's global network.
- Investor meetings and Analyst Day May 28
LTM hosted Investor Day on June 2 in Mumbai and scheduled analyst meetings at Citi India Conference and ICICI Securities Conference on June 5 and 9.
TL;DR: LTM is aggressively pivoting toward AI with BlueVerse ecosystem launches, outcome-based pricing, and a 1,000-engineer AI initiative, supported by strong deal wins including a $585M Paramount contract. However, the stock has been under severe pressure — down 34% YTD and 21.88% YoY — with Jefferies warning of 17% further downside as core IT revenue faces 25% AI-led disruption risk and margins contracted to 15.1%. Analyst views are split between bears citing execution risk on the pivot and bulls seeing 14% EPS CAGR and improving deal momentum. The trend depends on whether LTM can successfully transition to outcome-based AI services before traditional revenue erosion accelerates.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 8,691 | 8,702 | 8,905 | 9,017 | 8,893 | 9,143 | 9,433 | 9,661 | 9,772 | 9,841 | 10,394 | 10,781 | 11,292 |
| Expenses | 7,087 | 7,067 | 7,274 | 7,432 | 7,357 | 7,536 | 7,734 | 8,068 | 8,176 | 8,191 | 8,464 | 8,778 | 9,319 |
| Operating Profit | 1,604 | 1,636 | 1,631 | 1,585 | 1,536 | 1,606 | 1,699 | 1,593 | 1,596 | 1,649 | 1,930 | 2,003 | 1,973 |
| OPM % | 18% | 19% | 18% | 18% | 17% | 18% | 18% | 16% | 16% | 17% | 19% | 19% | 17% |
| Other Income | 66 | 132 | 143 | 220 | 208 | 227 | 299 | 212 | 251 | 392 | 300 | -363 | 237 |
| Interest | 44 | 46 | 47 | 61 | 68 | 72 | 70 | 69 | 67 | 72 | 69 | 69 | 65 |
| Depreciation | 182 | 185 | 208 | 199 | 227 | 235 | 241 | 264 | 251 | 243 | 282 | 266 | 264 |
| PBT | 1,444 | 1,536 | 1,519 | 1,545 | 1,448 | 1,526 | 1,687 | 1,472 | 1,529 | 1,726 | 1,879 | 1,305 | 1,881 |
| Tax % | 23% | 25% | 24% | 24% | 24% | 26% | 26% | 26% | 26% | 27% | 26% | 26% | 26% |
| Net Profit | 1,114 | 1,152 | 1,162 | 1,169 | 1,101 | 1,135 | 1,252 | 1,087 | 1,129 | 1,255 | 1,381 | 960 | 1,387 |
| EPS in Rs | 37.65 | 38.92 | 39.26 | 39.49 | 37.14 | 38.28 | 42.24 | 36.63 | 38.09 | 42.32 | 47.27 | 32.74 | 46.96 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,978 | 5,846 | 6,501 | 7,306 | 9,446 | 10,879 | 12,370 | 26,109 | 33,183 | 35,517 | 38,008 | 42,308 |
| Expenses | 3,973 | 4,819 | 5,271 | 6,119 | 7,562 | 8,849 | 9,645 | 20,860 | 27,075 | 29,130 | 31,513 | 34,752 |
| Operating Profit | 1,005 | 1,028 | 1,230 | 1,187 | 1,883 | 2,029 | 2,725 | 5,249 | 6,108 | 6,387 | 6,495 | 7,555 |
| OPM % | 20% | 18% | 19% | 16% | 20% | 19% | 22% | 20% | 18% | 18% | 17% | 18% |
| Other Income | 99 | 187 | 187 | 426 | 302 | 329 | 274 | 766 | 557 | 702 | 990 | 566 |
| Interest | 10 | 6 | 3 | 16 | 11 | 83 | 79 | 123 | 150 | 222 | 279 | 276 |
| Depreciation | 158 | 174 | 178 | 156 | 147 | 273 | 332 | 597 | 723 | 819 | 992 | 1,054 |
| PBT | 936 | 1,035 | 1,236 | 1,442 | 2,028 | 2,003 | 2,588 | 5,294 | 5,792 | 6,049 | 6,214 | 6,791 |
| Tax % | 18% | 19% | 21% | 23% | 25% | 24% | 25% | 25% | 24% | 24% | 26% | 27% |
| Net Profit | 769 | 836 | 971 | 1,112 | 1,516 | 1,520 | 1,938 | 3,950 | 4,410 | 4,585 | 4,602 | 4,983 |
| EPS in Rs | 238 | 49.25 | 56.91 | 64.65 | 87.37 | 87.3 | 111 | 225 | 149 | 155 | 155 | 169 |
| Div. Payout % | 63% | 72% | 29% | 33% | 32% | 32% | 36% | 41% | 40% | 42% | 42% | 44% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 16 | 17 | 17 | 17 | 17 | 17 | 18 | 30 | 30 | 30 | 30 | 30 |
| Reserves | 2,010 | 2,108 | 3,127 | 3,843 | 4,876 | 5,387 | 7,286 | 14,258 | 16,562 | 19,988 | 22,669 | 23,995 |
| Borrowings | 218 | 55 | 0 | 0 | 0 | 912 | 798 | 258 | 354 | 2,071 | 2,187 | 2,310 |
| Other Liabilities | 734 | 958 | 1,273 | 1,477 | 1,770 | 2,499 | 2,604 | 6,027 | 6,535 | 5,456 | 5,712 | 10,814 |
| Total Liabilities | 2,978 | 3,137 | 4,417 | 5,337 | 6,664 | 8,815 | 10,706 | 20,572 | 23,481 | 27,544 | 30,598 | 37,148 |
| Fixed Assets | 683 | 638 | 542 | 681 | 930 | 1,920 | 1,906 | 3,473 | 3,679 | 4,981 | 5,285 | 5,626 |
| CWIP | 25 | 20 | 1 | 7 | 12 | 59 | 66 | 503 | 902 | 551 | 681 | 922 |
| Investments | 104 | 43 | 941 | 1,264 | 1,740 | 2,219 | 3,730 | 6,048 | 5,458 | 8,744 | 9,845 | 12,568 |
| Other Assets | 2,166 | 2,437 | 2,934 | 3,385 | 3,982 | 4,617 | 5,004 | 10,548 | 13,442 | 13,269 | 14,787 | 18,033 |
| Total Assets | 2,978 | 3,137 | 4,417 | 5,337 | 6,664 | 8,815 | 10,706 | 20,572 | 23,481 | 27,544 | 30,598 | 37,148 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 642 | 858 | 1,170 | 844 | 1,395 | 1,644 | 2,400 | 3,251 | 3,095 | 5,670 | 4,546 | 4,799 |
| Investing | -103 | -40 | -961 | -452 | -749 | -643 | -1,657 | -1,643 | -271 | -3,918 | -1,729 | -1,604 |
| Financing | -497 | -817 | -33 | -408 | -594 | -890 | -509 | -1,680 | -1,932 | -2,269 | -2,574 | -2,926 |
| Net Cash Flow | 42 | 2 | 176 | -16 | 52 | 110 | 234 | -73 | 892 | -518 | 242 | 269 |
| Free Cash Flow | 448 | 744 | 1,101 | 746 | 1,242 | 1,401 | 2,133 | 2,198 | 2,160 | 4,836 | 3,612 | 3,890 |
| CFO/OP | 91 | 109 | 115 | 101 | 99 | 101 | 112 | 88 | 76 | 113 | 95 | 88 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 80 | 73 | 66 | 70 | 71 | 78 | 61 | 64 | 62 | 59 | 56 | 64 |
| Cash Conversion Cycle | 80 | 73 | 66 | 70 | 71 | 78 | 61 | 64 | 62 | 59 | 56 | 64 |
| Working Capital Days | 58 | 49 | 43 | 60 | 53 | 42 | 33 | 37 | 44 | 36 | 39 | 26 |
| ROCE % | 48% | 47% | 46% | 42% | 47% | 37% | 37% | 48% | 38% | 32% | 28% | 30% |
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Company Information
Larsen & Toubro Infotech Ltd offers extensive range of IT services like application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions, and platform-based solutions to the clients in diverse industries.[1]