FREE

MOSL: Morning India (13/December/18): 1. L&T Infotech; 2. Financial - NBFCS | Ground Reality; 3. EcoScope (Macro data much better than expectations); 4. India Life Insurance Tracker

MOrning India (13/December/18): 1. L&T Infotech (Investments fructifying to drive industry leading performance); 2. Financial - NBFCS | Ground Reality (On-the-ground demand strong); 3. EcoScope (Macro data much better than expectations); 4.  India Life Insurance Tracker

 

Today’s top research idea

L&T Infotech: Investments fructifying to drive industry leading performance

• On its annual Analyst Day, LTI shared its outlook the market, LTI’s readiness, the nuts & bolts of its strategy, and the sales approach.
• Digital adoption is still at a very early stage, and majority of the clients are less than half-way through their Digital journey.
• While the 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. 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 to expect robust industry-leading financial performance, client acquisitions and deal wins.  Our price target of INR1850 implies a 14% upside. Valuations keep us Neutral.

Piping hot news

Retail inflation contracts to 2.3% in Nov; industrial output zooms to 8.1% in Oct

• Retail inflation dipped further to 2.33 per cent in November while industrial output zoomed to over 8 per cent during October, according to government data released on Wednesday.