Sharekhan has given Buy recommendation for Larsen and Toubro Infotech with a target price of Rs. 7100 in its research report issued on Apr 19, 2022

Sharekhan’s research report on Larsen and Toubro Infotech

LTI’s revenue growth for Q4FY22 lagged hopes as onsite volume growth declined, while EBIT margin remained in line with expectations. Deal TCVs and pipeline were strong. Q4 also saw strong logo additions and robust net hiring. Early investments in Cloud, new technologies and data, and strengthening of partnerships with hyperscalers & major technology vendors is yielding results in terms of capturing market opportunity. Conversations with clients on digital transformation, strong deal wins, a large deal pipeline, robust net headcount addition and broad-based demand indicate strong revenue growth momentum to continue in FY2023E.

Outlook

We maintain a Buy on LTI with a PT of Rs. 7,100 given its strong deal wins, consistent logo additions and broad-based demand. We expect revenue/EPS to clock 20%/19% CAGR over FY2022-24.

More Info

At 14:20 hrs Larsen & Toubro Infotech was quoting at Rs 5,123.75, down Rs 362.40, or 6.61 percent.

It has touched an intraday high of Rs 5,465.00 and an intraday low of Rs 5,106.30.

It was trading with volumes of 90,117 shares, compared to its thirty day average of 16,417 shares, an increase of 448.92 percent.

In the previous trading session, the share closed down 6.49 percent or Rs 380.50 at Rs 5,486.15.

The share touched its 52-week high Rs 7,595.25 and 52-week low Rs 3,525.95 on 04 January, 2022 and 17 May, 2021, respectively.

Currently, it is trading 32.54 percent below its 52-week high and 45.32 percent above its 52-week low.

Market capitalisation stands at Rs 89,820.44 crore.

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