Sharekhan has given Buy recommendation for Larsen and Toubro Infotech with a target price of Rs. 4800 in its research report issued on Jul 16, 2021
Sharekhan’s research report on Larsen and Toubro Infotech
Q1 revenue growth was strong, while EBIT margins missed estimates; deal pipeline stayed healthy, new logos were added, and LTI saw broad-based demand across verticals. Cash generation remained weak. Management confident of delivering top-quartile revenue growth in FY2022E, led by strong large account management, addition of new logos, traction for cloud & data business and strong demand. Strong hiring, timely wage revisions, investments in sales and capabilities and strategies around on cloud & data would aid sustainable growth in coming years. We expect revenue to clock 17% CAGR over FY2021-24.
We maintain a Buy on LTI with a PT of Rs. 4,800 as it is well-placed to report revenue growth in the leadership quadrant in FY2022E. Strong sales & marketing practices would help it capture opportunities.