Sharekhan has given Buy recommendation for Larsen and Toubro Infotech with a target price of Rs. 8100 in its research report issued on Jan 19, 2022
Sharekhan’s research report on Larsen and Toubro Infotech
Q3 numbers beat our estimates on all fronts; Q3 saw strong new logo additions (including one Fortune-500 logo), better client metrics, higher offshoring and robust client mining. Strong demand was led by higher spends on cloud and digital transformation initiatives, spend on newer technologies and higher offshoring opportunities owing to a talent crunch. LTI’s scalable business model helps it to grow faster in a strong demand environment, with stable profitability. LTI is well-placed to remain in the top quadrant of the industry in terms of revenue growth in the medium-term.
We maintain a Buy on LTI with a PT of Rs. 8,100 given its strength in core modernization capability, robust client base, and superior digital competencies. We expect revenue/EPS to clock 18%/21% CAGR over FY2022-24.