The 29 reports from 10 analysts offering long term price targets
for Larsen & Toubro Infotech Ltd. have an average target of 3525.38. The consensus estimate
represents a downside of -10.28%
from the last price of 3929.45.
L&T Technology Services: We maintain REDUCE on L&T Technology Services (LTTS) as valuations more than adequately factor in the recovery curve despite a strong (in-line) 3Q and accelerating growth/margin profile in the near term. We acknowledge LTTS' prowess in digital ER&D across verticals and addressability, yet the business cyclicality feeds into the volatile profile over the medium term. Deal momentum has evidently picked up in ER&D (USD 100mn-5yr Oil & Gas deal and seven deals >USD 10mn a validation). Margin recovery is supported by increasing utilisation/offshore (now a familiar trend), better mix and operating leverage, which should support the strong earnings momentum for FY22. The company is targeting 17%+ EBIT margins and raised its FY21 revenue growth guidance to -6.5% (-7 to -8% earlier). Our target price is Rs 2,175, at 22x Dec-22E EPS (20x earlier). Federal Bank: FB's 3QFY21 operating performance increasingly demonstrates an improving franchise that is beginning to find and consistently exercise pricing power (a gradual 9bps QoQ NIM expansion and strong fee traction). Provisions remained sticky (~130bps ann.), as FB continued to cover pro forma slippages. Even as we continue to monitor asset quality outcomes, we revise our earnings upwards as we foresee a sustained improvement in operating metrics. Maintain BUY with a target price of Rs 92 (1.0x FY23E ABV). Bajaj Finance: BAF reported a mixed quarter as LLPs remained expectedly sticky even as AUM growth showed signs of broad-based recovery as most businesses (excluding auto finance) recovered to 85-100% of pre-COVID disbursal levels. BAF is now focussing on business transformation...
LTI is expected to be a key beneficiary of recent trends of multi-year technology transformation phase. The company's ability to deliver end to end solution right from cloud migration, core modernisation, data analytics and customer experience will lead to healthy traction in revenues over the coming years. In addition, the company's ability to win large deals, effectively mine clients, adding fortune 500 clients and acquire new clients will enable the company to deliver industry leading revenue growth in coming years. The company has won US$278 million large deal and has...
L&T; Infotech (LTI)'s 3QFY21 USD revenue growth of 5.3% QoQ CC (est. 4.0% QoQ CC) was broad-based, barring Insurance (-0.6% QoQ) and E&U; (0.1% QoQ). The 3Q EBIT margin expansion of only 70bp QoQ (to 20.6%) despite high improvement in utilization (+220bp QoQ) and the offshore mix (+100bp QoQ) was due to pass-through business and employee additions (1,500+). During the quarter, LTI reported the highest ever TCV of large deal wins of USD278m inclusive of the earlier announced USD204m win with Injazat. We continue to expect LTI to deliver revenue growth on the higher end of...
LTI is up ~130% since its inclusion in our model portfolio (in 3QFY20) and is currently the most expensive (28x FY23 EPS) IT company within our Coverage Universe. While we continue to deem it among the best-in-class IT services companies on execution and management quality, we believe the stock more than factors in the potential; hence, we...
We attended the virtual analyst meet of Larsen & Toubro Infotech (LTI). The company highlighted that it aspires to achieve US$1 billion in cloud revenues in the next three years from current US$180 million implying 77% CAGR over the next three years from this unit. In addition, LTI has won a large deal in the UAE amounting to ~AED760 million (~US$205 million) over the next six years. This, coupled with a healthy large deal pipeline (up 62% YoY to US$1.98 billion) and increased investment to drive sales growth makes the company confident of being in an industry leading revenue...
Larsen and Toubro Infotech (LTI) at the analyst meet held on 10th Dec. 2020 did not give a specific revenue guidance but exuded confidence that it will continue to be in the top quartile of revenue growth of the industry (clocked 14.5% CAGR in USD terms during FY16-FY20). It reiterated its commitment to hold PAT margin at 14-15%. The confidence on revenue growth seems to stem from continued investments in (1) sales, localization, reskilling and capability building (2) dedicated cloud investments (3) its new focus on products connected with data analytics. Growth is going to come from both new logos as well as expansion of existing relationships. These efforts have resulted in a large deal pipeline, growing by 62% to...
LTI will continue to invest in digital capabilities and strengthen their sales & marketing team and at the same time maintain stable PAT Margin of 14-15% LTI's large deal pipeline is strong at 1.9Bn up 62% YoY. (vs 7 large deals of...
As part of the increased Cloud and Products focus, LTI is planning to increase investment in its sales and marketing team. Increased investment is necessary for it to establish its presence in front of customers and should benefit in the long term. However, we are skeptical of its ability to generate outsized revenue growth from these businesses in the medium term due to elevated competition, and expect these investments to continue over the next few years....
Q2FY21 has been a much-awaited recovery quarter for Indian IT, exhibiting a V-shaped rebound marked by growth and margin outperformance across the sector.
LTI reported CC de-growth of 4.7% QoQ exact in line with our estimates. LTI surprised on margins expanded 71bps QoQ to 17.4% (Ple:17%, Cons: 16.8%) led by 11% QoQ SG&A;, lower travel costs & higher proportion of offshore revenue (up 170 bps QoQ). Revenue decline was led by manufacturing (-16% QoQ) & Energy (-11% QoQ). Limited exposure to travel , hospitality and retail limited the revenue decline. Management guided Q1FY21 was trough & Q2FY21 will be flat or up QoQ & recovery will happen in 2HFY21. LTI bagged one large deal and solid execution in US just a 2.2% QoQ decline in Q1. No...
L&T; Infotech's (LTI) Q1FY21 revenue was in line with estimates, with a 4.7% QoQ CC decline due to a drop in the manufacturing and energy/utilities verticals.
Margins of Tier 1 companies are expected to decline ~32-200 bps while among Tier 2 companies NIIT and TechM are expected to post a margin decline of ~161-200 bps. This is mainly due to a dip in utilisation, pricing pressure & cross currency headwind, partially offset by rupee depreciation, lower travel cost and lower general administrative cost. Among midcap, LTI, MindTree to report stable margins We expect L&T; Infotech to report stable margins led by rupee tailwind, lower travel cost and absence of one-time contribution to PM cares fund...
LTI reported a strong Q4FY20. Revenue grew by 4.7% QoQ in CC beating our forecast of +1.9%. EBIT margin of 16.7%, improved 45bps QoQ, vs. our forecast of 16.2% resulting in EPS of Rs24.5, +13%/+12.2% QoQ/YoY, being a big beat to our forecast. LTI has maintained the large deal momentum in Q4FY20 with 2 deals with net-new TCV of US$113 mn (US$332 mn for FY20). As expected, LTI has guided for weakness in Q1FY21 (mid-single digit QoQ decline in revenue) and expects QoQ growth from Q2. We factor Q4FY20 beat and increase FY21/22 revenue (in US$) 1.7%/0.6% and EPS by 7.4%/6.2%. We forecast revenue (US$)/EPS CAGR of 9.4%/12.5% over FY20-22. We...
