Goldman Sachs Maintains Neutral Stance on LTM Ltd Amid Revenue Growth Concerns

LTM Ltd's share price fell by 2.76% on Monday to ₹4,428.40, down from its previous close of ₹4,554. The stock opened at ₹4,500 and fluctuated throughout the day, trading between ₹4,425 and ₹4,519.40.

The decline comes after a meeting with Goldman Sachs management, which maintained a Neutral rating for LTM Ltd despite the target price being set at ₹3,870. This target is approximately 12.6% below Monday's closing price, indicating that Goldman sees the stock drifting towards the lower half of its 52-week range.

Management expects revenue growth to be similar to last year's, with a stronger third quarter than second. However, this implies only about 2% constant-quarter growth for the rest of the year, which is a relatively muted pace for a large-cap IT services name.

The company also plans to integrate its announced acquisition of Randstad in the third quarter of FY27, which will add scale and revenue but also brings integration risks and costs. The Indian IT services sector as a whole is navigating how AI reshapes demand, with clients rethinking large deals while new AI-led work opens up.

Goldman's Neutral stance reflects the cautious tone of management's guidance, emphasizing margin discipline and acquisition benefits to offset soft top-line growth and AI-related demand pressure.