MOSL: L&T INFOTECH (Neutral)-Investments fructifying to drive industry leading performance
L&T INFOTECH: Investments fructifying to drive industry leading performance
We attended L&T Infotech’s (LTI) Analyst Day, where the company shared the outlook on the market, its readiness to capture opportunities, the nuts & bolts of its strategy, and the sales approach. Key highlights:
- Digital adoption is still at a very early stage, and majority of the clients are less than half-way through their Digital journey.
- While Digital capabilities are imperative, LTI also shared its differentiated proposition with which it approaches the legacy spending of clients. It is transforming the ‘lights-on’ services by driving end business outcomes. An example here is rethinking the role of a support engineer as a productivity engineer.
- Its sales and marketing is being driven by 10 different units, each with a specialized role. That includes alliances with leading platforms as well as new wage platforms, which has helped 12 large deal wins in last 10 quarters with TCV of USD575m and 25% higher pipeline YoY.
- The company continues expect a robust financial performance and traction in client acquisitions and deal wins.
- We acknowledge that LTI has among the best business models in tier-II IT. The stock trades at 16.5x FY20E earnings. Our price target of INR1,850 discounts forward earnings by 18x, and implies an upside of 14%. Maintain Neutral.
Larsen & Toubro Infotech Limited is an India-based company, which is engaged in computer programming, consultancy and related activities. The Company's business segments include Industrials Cluster and Services Cluster. The Industrials Cluster segment consists of the business verticals of energy and process, consumer packaged goods, retail and pharmaceuticals, hi-tech and consumer electronics, automotive and aerospace, plant equipment, and utilities, engineering and construction. The Services Cluster segment consists of the business verticals of banking and financial services, insurance, media and entertainment, travel and logistics, and other miscellaneous business verticals. The Company offers a range of services, such as Analytics & Information Management (AIM), Consulting, Internet of Things, Applications Management, Enterprise Integration, Industrial Internet of Things, System Integration, Assurance Services, Geographical Information System (GIS) and Infrastructure Management.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.