Sharekhan has given Buy recommendation for L&T Infotech with a target price of Rs. 6850 in its research report issued on Oct 18, 2021

Sharekhan’s research report on L&T Infotech

Q2 numbers beat our estimates on all fronts; deal TCVs and deal pipeline were robust, client metrics healthy across categories, while offshoring and net headcount addition stayed high. OCF/net profit stayed healthy at 91%. Strong demand is led by rising spend of transformation initiatives, spend on newer technologies and increasing opportunities on automation. The management expects strong demand to sustain at least for next three years. Strong hiring, investments in sales and capabilities, right market strategies and excellent execution positions LTI for sustainable growth over FY2022-FY2024E. We expect revenue/EPS to clock 15%/16% CAGR over FY2022-24.

Outlook

We maintain a Buy on LTI with a revised PT of Rs. 6,850 given its strength in addressing digital transformation spends, robust deal wins and robust demand.

 

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