Shares of this large-cap IT stock gained up to 3.50 percent today after the merger of HDFC into HDFC Bank paved the way for the company to make an entry into the ‘Nifty 50’ index. In addition to the same, the markets showed positive sentiments leading the scrip to hit its 52-week high mark.
With a market capitalization of more than Rs 150,000 crores, the shares of LTIMindtree Limited closed today at Rs 5,242.10, trading flat compared to the previous closing levels of Rs 5,250.55. The scrip witnessed an intra-day high price of Rs 5,430 which was also marked as the company’s 52-week high mark indicating a gain of 3.50 percent.
Such movements in the stock are observed after the National Stock Exchange (NSE) rolled out a notification on July 4th, 2023 announcing replacements in indices after Housing Development Finance Corporation Limited (HDFC) merged with HDFC Bank.
As a result of the merger, HDFC Bank, alone, will remain as a constituent in the ‘Nifty 50’ index. Pertaining to the same, the notification further informed that HDFC will be replaced by LTIMindtree Limited and the same will be effective from 13th July 2023. The IT company has also replaced HDFC in the ‘Nifty Services’ Sector.
LTIMindtree Limited is a global player providing technology consulting as well as various digital solutions. Some of its operating segments include Financial Services, Hospitality, Healthcare, etc.
Nuvama Institutional Equities, one of the well-known brokerages, said in a statement today that LTIMindtree is likely to see net inflows of around $125-130 million on inclusion to the Nifty 50 index.
Coming onto the financial performance of LTIMindtree, the basic parameters such as the operating revenues and net profits went up with the former increasing from Rs 15,668 crores during FY21-22 to Rs 33,183 crores in FY22-23 and, the latter, moving from Rs 2,298 crores to Rs 4,410 crores.
Despite operations on a larger scale, the company has been successful in reducing its debt-to-equity ratio with the recent movement from 0.09 times during FY21-22 to 0.01 times in FY22-23.
The shareholding pattern data, as per the March 2023 quarter, exhibits the Promoters holding a 68.68 percent stake, and Foreign Institutional Investors (FIIs) holding a 8.41 percent stake in the company.
Written by Amit Madnani
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