Shares of Larsen & Toubro Infotech Limited (LTI) are in focus after the recent analyst meeting. The stock has delivered more than 100 per cent return in the last one year.
The multibagger stock has surged from Rs 3,287.75 to Rs 6,848.15 mark in the last 12 months - yielding around 108 per cent during the said period.
Long-term investors have made big gains by investing in the stock as it has surged over 900 per cent in the last five years.
With a market capitalisation of more than Rs 1,19,000 crore, the shares stand higher than 5-day, 50-day, 100-day and 200-day moving averages but lower than 20-day moving averages.
Brokerages have maintained a positive stance after the company said it is aspiring to reach a $4 billion annual revenue rate at a faster pace than its precedent time period.
ICICI Direct noted that LTI's ability to deliver end-to-end solutions will help in registering industry-leading growth.
The company's ability to win large deals, presence in niche verticals, effectively mine clients, add Fortune 500 clients and digital prowess will be other key drivers.
The brokerage firm expects Larsen & Toubro Infotech Limited to register 24.7% CAGR revenue growth in FY21-23E. It has a 'Buy' rating on the stock with a target price of Rs 7,650 per share.
Edelweiss Securities mentioned that reasons that make the company confident of emerging stronger are secular demand, investing in capabilities, best talent, robust sales & marketing blueprint for continued growth, an enviable team and high-quality operational resilience.
"Larsen & Toubro Infotech Limited is focussed on spending in newer areas like ESG, cybersecurity, digital, data and cloud and we believe that the company is on track to create immense shareholder value over the next 15 years. The stock is trading at 31.8x FY23E. We maintain ‘BUY’ with a target price of Rs 7,505 (40x Q4FY23E) based on strong growth prospects," the brokerage firm said in its research report.
According to Motilal Oswal, LTI’s deep domain capabilities, strong partnerships with hyperscalers, and robust sales engine would continue to drive industry-leading growth rates for the company.
"We expect a USD revenue CAGR of 22% and INR PAT CAGR of 21% over FY21–24. While we remain confident about the company’s execution capabilities, we remain on the sidelines on the stock due to the significant valuation re-rating," said the brokerage firm.
Recently, the global technology consulting and digital solutions company announced that it has expanded its Hyderabad operations by setting up a new facility in the city. The centre will focus on delivering digital, data, and cloud solutions to global clients.
At 14:48 hours, the shares of Larsen & Toubro Infotech were trading 1.66 per cent higher at Rs 6,793.70 on the Bombay Stock Exchange (BSE).
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