Stock: LTIMindtree Breaks Out After Shopify AI Partnership

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After months of consolidation, LTIMindtree rallies with strong technical signals and robust fundamentals. With a new AI Commerce Center of Excellence launched in partnership with Shopify, the IT major is betting on AI-led transformation, margin expansion, and global digital commerce leadership.

By S JHA

MUMBAI, September 18, 2025 — LTIMindtree (NSE: LTIM, BSE: 540005) has entered a bullish phase, with StockEdge flagging a breakout backed by strong technical and fundamental indicators. On the daily chart, LTIM has bounced back after consolidation, trading above both 50-day and 200-day EMAs with RSI at 65 — firmly in bullish territory.

“Momentum scores remain robust at 83/100 (1M), 85/100 (3M), and 88/100 (6M), while past returns have significantly outpaced benchmarks — up 9.28% in one month, 25.1% in six months, and over 105% in five years,” said StockEdge in a stock analysis posted in its Telegram channel.

On the fundamentals side, LTIM reported Q1FY26 net sales of ₹9,840 crore, EBITDA of ₹1,649 crore, and PAT of ₹1,254 crore. Management commentary remains upbeat, projecting margin expansion through automation, cost optimization, and AI-led efficiency gains, despite macroeconomic headwinds.

Adding momentum to the growth story, LTIMindtree has partnered with Shopify to launch an AI-enabled Digital Commerce Center of Excellence, aimed at helping enterprises accelerate transformation, drive innovation at scale, and enhance online store management. Analysts see this move strengthening LTIM’s positioning in global digital commerce and stoking long-term investor confidence.

The stock surged to ₹5619 on Thursday morning. But it later cooled as profit booking was reported in the IT counters. The 52-week high of the stock is ₹6767/ But most of the IT stocks are trading way below their 52-week highs.

The US federal reserve rate cut by 25 basis point brought investors’ interests in the IT counters on Thursday. Most of the IT stocks gained on Thursday morning, while losing steam afterwards.

The AI theme per analysts is bringing attention to IT stocks. Newgen software was also strong during the Thursday trade after the company has shown activities on AI theme.

LTI Mindtree is known to be a high beta IT stock, which is prone to wild fluctuations in its prices. The stock has been consolidating for past several months. The stock is currently trading at a PE multiple of 34. The face value of the stock is ₹1. The company commands a market valuation of over ₹1,63,731 crores.

Analysts claim that the US Fed rate cut may spur spending among the American large firms who outsource works to the Indian IT firms. Infosys was the lead gainer among the largecap in the IT space on Thursday.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)