Alpha | L&T Infotech Ltd. – Equity Research Desk

Larsen & Toubro Infotech Ltd. – Merger Play

LTI (Larsen & Toubro Infotech Ltd.) is a global technology consulting and digital solutions Company helping more than 495 clients succeed in a converging world. With operations in 33 countries, the company go extra mile for its clients and accelerate its digital transformation with LTI’s Mosaic platform enabling their mobile, social, analytics, IoT, and cloud journeys. Founded as L&T Information Technology Ltd in December 1996, LTI is a wholly owned subsidiary of Larsen & Toubro (L&T). During 2001–2002 the company’s name was changed from L&T Information Technology Limited to Larsen & Toubro Infotech Limited. Each day, the team of more than 46,000 LTItes enables its clients to improve the effectiveness of their business and technology operations and deliver value to their customers.

Valuation:

LTI is likely to maintain a healthy and efficient business profile over the medium term which is mainly led by steady revenue growth and sound operating efficiency. Its financial profile is also expected to remain strong over this period due to healthy cash accruals, debt-free balance sheets, and only moderate capital spending. We recommend a BUY rating in the stock with the target price (TP) of Rs.5020, 30x FY24E EPS.