Larsen & Toubro Infotech achieves ₹1 trillion market capitalization for the first time

It is the second L&T group company to achieve this feat after Larsen & Toubro Limited, India’s largest engineering company. The current mcap of L&T is ₹2.39 trillion.

LTI is one of the fastest growing mid-cap IT companies in India. It is part of the L&T Group and provides services such as ADM (Application Development and Maintenance), Enterprise Solutions and Infrastructure Management Services.

The company has a strong presence in BFSI and manufacturing verticals, which account for 45% and 17.5% of the company’s revenue and are among the least affected verticals due to the shutdown due to COVID-19.

The company does not have huge exposure to service-oriented verticals such as travel and tourism, which have been hit hardest by the outbreak of COVID-19.

“LTI has been growing significantly faster than both mid- and large-cap peers over the years on the back of strong deal wins and we expect the company to continue to outperform. We expect the company to register a growth of 17.9% / 20.5% / 20.5% of Revenue / Ebitda / PAT between FY15 and FY23, given a strong deal pipeline and growing demand for digital solutions,” said Angel The broking said in a note to its investors. The brokerage firm has ‘accumulation’ rating on the stock and has raised its target price to Rs. ₹5,950.

In the June quarter, its management said it is fairly confident of maintaining growth momentum and delivering top quartile revenue performance in FY22E, given strong deal intake, a healthy deal pipeline and customer mining. The company expects FY22 NPM to be in the range of 14-15%.

Despite the absence of major new deal wins in the first quarter, LTI highlighted a strong demand environment led by a strong deal pipeline. It continues to report small, medium and large sized deals and will continue to lead growth in the industry.

Motilal Oswal said, “We expect LTI to deliver revenue growth at a high level across our coverage universe (FY21-23E USD Revenue CAGR 18%), aided by deal traction, a strong client mining capacity and a supportive demand environment. has been received”, said the Motilal Oswal report.

“As digital moves into the mainstream, we expect LTI to benefit from continued investments in digital capabilities, strong customer additions and mining capabilities. This should result in industry-leading growth”, said the Motilal Oswal report. Is.