LTI shares surge in last year, broker maintains positive outlook

171
2
LTI shares surge in last year, broker maintains positive outlook

After the recent analyst meeting, the shares of Larsen Toubro Infotech Limited LTI are in focus. The stock has delivered more than 100 per cent return in the last year.

The multibagger stock has increased from Rs 3,287 to Rs 3,287. 75 to 6,848 Rs. The last 12 months, 15 mark yielded around 108 per cent, a high of around 108 per cent.

The stock has surged over 900 per cent in the last five years and investors have made big gains by investing in it.

With a market value of more than 1,19, 000 crore, the shares are higher than 5 day, 50 day, 100 day and 200 day moving averages, but lower than 20 day moving averages.

After the company said it was attempting to reach a $4 billion annual revenue rate at a faster pace than its predecessor time period, the broker maintained a positive attitude.

ICICI Direct noted that LTI's ability to deliver end-to- end solutions will help in registering industry-leading growth.

Other key drivers of the company are the ability to win large deals, presence in niche verticals, effectively mine clients, add Fortune 500 clients and digital prowess.

The brokerage firm expects Larsen Toubro Infotech Limited to register 24.7% CAGR revenue growth in FY 21 -- 23 E. It has a 'Buy' rating on the stock with a target price of 7,650 per share.

Larsen Toubro Infotech Limited is focused on spending in new 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 31.8 x FY 23 E. We maintain BUY with a target price of Rs 7,505 40 x Q 4 FY 23 E based on strong growth prospects, the brokerage firm said in its research report.

Motilal Oswal said that 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 revenue CAGR of 22% and 21% over FY 21 24. The brokerage firm said that while we remain confident about the company's execution capabilities, we remain on the sidelines due to the significant valuation re-rating.

The global technology consulting and digital solutions company announced recently that it has expanded its Hyderabad operations by opening a new facility in the city. The centre will focus on delivering digital, data, and cloud solutions to global clients.