EUR 120.00 For Business Accounts Only

MOSL: Morning India (12/December/19): 1. L&T Infotech (Encouraging strength in deal pipeline); 2. HDFC Life Insurance; 3. Strides Pharma

Morning India (12/December/19):

Today’s top research idea
L&T Infotech: Encouraging strength in deal pipeline
** While continuing with the current strategy, LTI at its analyst day outlined a few dimensions of further focus: (i) industry centric plays, (ii) productisation of services, (iii) people and (iv) capabilities.

** Large/overall deal pipeline is stronger than a year ago by 20%/42%. The strong focus on new logo addition translated into higher share of new logos in the pipeline (35% v/s 19% a year ago). However, the share of new-age deals has moderated marginally (37% v/s 43% a year ago).

** Reskilling of 50% of workforce was completed over the last one year, leading to 33% higher fulfillment. Capability agenda is premised on addition of capabilities both organically and via partnerships.

** Regarding the recent DHS visit at its New Jersey office, management reiterated that LTI is committed to the highest level of integrity and thus it should not be a cause for concern. The strength in the deal pipeline brings further conviction to our Buy stance.

 Piping hot news
Pharma companies seek hike in drug rates under price control
With a 50-200% rise in the cost of raw materials imported from China, pharmaceutical lobby groups have urged the government to invoke extraordinary powers to hike prices of drugs under price control, according to sources. Over 70% of the country’s total bulk drug requirement comes from China.