LTM share price: Why this IT stock plunged 7% after Investor Day; target prices

Shares of LTM Ltd (erstwhile LTI Mindtree Ltd) plunged 7 per cent in Wednesday's trade, snapping a four-day winning run on likely profit booking after the LTM management at its Investor Day maintained its Lakshya 2031 aspiration of two times revenue and 200 basis points EBIT margin expansion over FY26-31. Ther target implies 15 per cent revenue growth anually. MOFSL said the aspiration remains ahead of LTM's recent growth profile, with the path to delivery still dependent on several variables that are yet to fully play out. 

"We believe industry-wide pricing pressure and competitive intensity could keep near-term improvement gradual, with margins likely to expand 50bp over the next couple of years and further upside dependent on successful AI monetization and a higher mix of platform-led revenue," MOFSL said.

Nomura sees the LTM stock at Rs 5,000. Choice International Broking has 'Add' on the scrip with a target of Rs 4,700. MOFSL finds the stock worth Rs 5,400 apiece. On Wednesday, the stock fell 6.56 per cent to hit a low of Rs 4,057.20 apiece. The stock is down 9 per cent in 2026 so far.

Nomura, which attended the Investor Day meet, said the LTM management is anticipating the
deal momentum to persist, supported by a robust pipeline.

"LTM noted that one of the levers to decouple revenue from cost is to win more outcome-oriented and large-scale deals. LTM expects to achieve this by focussing on key accounts, sales productivity and deal structuring," it said.

The foreign brokerage said LTM anticipates to achieve its 2031 targets by decoupling cost from revenue through a greater emphasis on outcome-based contracts, while improving delivery cost via AI-driven productivity enhancements and SG&A leverage. 

"It also anticipates margins to improve as the company expects headcount growth and revenue growth to be non-linear, with an only 40 per cent increase in headcount to reach its FY31E revenue target. LTM has observed a 20-25 per cent contraction of traditional services revenue over the past 12-18 months; however, new growth opportunities are also emerging, and the company’s strategic vision accounts for this revenue cannibalization," Nomura said.

Choice International Broking said LTM is repositioning itself as a Business AI-led transformation partner, focusing on enterprise process reimagination, contextual AI adoption and execution rather than foundation model development.

"The Three Cs framework - Context, Cost and Change - underpins its strategy, supported by investments in verticalised Small Language Models (SLMs) and agentic AI solutions for industry-specific use cases. The launch of Blueverse Currency signals a gradual shift towards outcome-based and non-linear pricing, with potential to improve revenue quality and margin scalability over time," it said.