03 Jun , 2026 By : Debdeep Gupta
Shares of LTM Ltd fell nearly 7 percent on Wednesday, emerging among the biggest losers in the information technology space, after brokerages differed sharply on how artificial intelligence (AI) could shape the company's growth prospects.
LTM (LTIMindtree) stock fell to as low as Rs 4,040 in morning trade, down 6.9 percent, even as the company remains one of the better-performing large-cap IT stocks in recent sessions. The stock had gained 9.4 percent over the previous four trading sessions before Wednesday's decline.
The weakness came amid a broader selloff in technology shares. The Nifty IT index fell 4.4 percent, making it the worst-performing sectoral index, while heavyweight stocks such as TCS, Infosys, HCL Technologies and Tech Mahindra featured among the top losers on the Nifty 50.
Brokerages divided on impact of AI on LTM's business
UBS maintained a Neutral rating on LTM Ltd stock with a target price of Rs 4,520 per share. It cited management's view that artificial intelligence could help double the company's revenue over the next five years.
According to UBS, management expects enterprise technology spending to expand to as much as $2.3 trillion as AI adoption accelerates. The company believes FY27 could mark the beginning of AI adoption at scale across enterprises, which would create significant opportunities in business AI services and technology modernisation.
On the other hand, Jefferies struck a more cautious note. The brokerage maintained an Underperform rating with a target price of Rs 3,500 per share, implying nearly 20 percent downside from yesterday's closing price.
The brokerage said that while AI could expand the overall addressable market for technology services companies, it may also reduce traditional IT services revenue by around 25 percent. Jefferies said execution risks surrounding the industry's evolving business model remain high.
The brokerage also questioned whether the company's ambitions of doubling revenue and expanding margins are achievable, describing those targets as too ambitious.
Indian IT stocks had rallied sharply over the previous three sessions after strong results from several global software companies eased concerns that AI could hurt software demand.
Wednesday's decline suggests investors are still assessing the potential disruptions that AI could bring to traditional outsourcing and technology services businesses, even as companies position themselves to benefit from new AI-related opportunities.
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