Three Directors at LTIMindtree Ltd sold after exercising options/sold 1,865 shares at between 5,996.450INR and 6,011.000INR. The significance rating of the trade was 56/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by ...
The independent financial analyst theScreener just requalified the general evaluation of LARSEN & TOUBRO INFOTECH (IN), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 0 out of 4 stars and its market behaviour is seen as moderately risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Slightly Negative. As of the analysis date Januar...
L&T INFOTECH: Growth outlook turbocharged by cloud spend (LTI IN, Mkt Cap USD15.3b, CMP INR6598, TP INR6640, 1% Upside, Neutral) We attended LTI’s Analyst Day, where the management a) reiterated its guidance for strong broad-based growth for the coming 3–5 years and b) highlighted ‘The Great Restructuring’ as a key driver of the demand tailwind. The management remains confident about this growth trajectory and mentioned six factors that would drive growth – demand, capability, talent, sa...
(LTI IN, Mkt Cap USD13.7b, CMP INR5907, TP INR6430, 9% Upside, Neutral) Talent supply a near-term limitation on growth LTI’s revenue growth, in USD terms, stood at 8.9% QoQ CC in 2QFY22, above our estimate of 5.4%. Growth was broad based across verticals, service lines, geographies, and client buckets. Broad based industry growth was led by BFS and Manufacturing. EBIT margin expanded by 80bp QoQ to 17.2% in 2QFY22 (est. 16.7%), led by SG&A leverage, offshoring, and higher working days, p...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Growth Over Value We continue to see coronavirus concerns as helping correct the excess bullish sentiment in the short-term. Additionally, considering the dearth of breakdowns, we continue to believe this is a bull market until proven otherwise and a “buy the dip†strategy remains warranted. • Major Indexes Holding Up Well. As mentioned above, breakdowns in major indexes are hard to come by. EM (MSCI EM), China (MSCI China), Europe (STOXX 600), MSCI ACWI, ACWI ex-US, and EAFE have all pu...
(LTI IN, Mkt Cap USD4.8b, CMP INR1933, TP INR2260, 17% Upside, Buy) Continue expecting industry leading growth; Reiterate Buy** Robust growth in the top account alleviates concerns around client-specific issues. Besides, strong/broad-based client addition across buckets and encouraging deal wins will likely translate into industry leading growth. We see further scope for margin expansion driven by better utilization. ** We upgrade our EPS estimate by ~6% for FY20-22, given the large deal win m...
(LTI IN, Mkt Cap USD4.0b, CMP INR1634, TP INR2030, 24% Upside, Buy) We attended L&T Infotech's (LTI) analyst day. Key takeaways: ** While continuing with the current strategy, LTI 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 1...
L&T Infotech: Bounce back on the horizon; Upgrade to Buy (LTI IN, Mkt Cap USD4.1b, CMP INR1671, TP INR2030, 22% Upside, Upgrade to Buy) Over the past four years, LTI has continuously strengthened the moats around its business through a slew of measures. Client specific issues, which led to muted performance over 9MCY19, now seem to be largely behind. Despite the cautious IT spending trend, the recent large deal wins and client additions give us the confidence to expect strong revenue CA...
&T INFOTECH: Strong deal wins drive confidence on double-digit growth(LTI IN, Mkt Cap USD3.9b, CMP INR1612, TP INR1690, 5% Upside, Neutral) ** Revenue outperformance amidst weaker expectations: Revenue grew 11.9% YoY CC, INR EBIT was down 9.7% YoY, while PAT declined 10% YoY (inline) in 2QFY20. In 1HFY20, revenue increased 11% YoY, while EBIT and PAT were down by 3% and 6%, respectively. The performance was primarily driven by Energy & Utilities (+15.1% QoQ CC) and Manufacturing (+10.6% QoQ CC)...
L&T INFOTECH: Spending weakness transcends beyond just the top customer (LTI IN, Mkt Cap USD3.8b, CMP INR1514, TP INR1700, 12% Upside, Neutral) Soft 1QFY20 performance on expected lines: Revenues in constant currency (CC) grew 12.9% YoY (in-line), INR EBIT grew 4.1% YoY (in-line) while PAT grew 1.6% YoY (2.7% miss). Performance during the quarter was dragged by volatility in top accounts. Revenues from the top 6-10 clients declined 6.7% sequentially. EBIT margin during the quarter stood a...
L&T Infotech: Top client's budget restructuring drives expectation of back-ended FY20 revenue growth (LTI IN, Mkt Cap USD4.2b, CMP INR1678, TP INR1910, 14% Upside, Neutral) 4Q revenue dragged by largest account: LTI’s FY19 CC revenue grew 20.9% with INR EBITDA/PAT growth at 56%/31%. LTI announced full-year dividend of INR28/share, pegging the total payout at ~32%. For 4QFY19, CC revenue grew 17.5% YoY (v/s est. of 18%), EBITDA grew 35% YoY (v/s est. of 34%), and PAT grew 12% (v/s est. of 8%)...
L&T INFOTECH: Growth momentum intact; transient sluggishness in few top clients (LTI IN, Mkt Cap USD4.4b, CMP INR1801, TP INR1950, 8% Upside, Neutral) Continues to lead the pack in growth: LTI reported robust 3QFY19 results with revenues up 20.6% YoY constant currency (CC) (estimate of 18.1%). EBITDA jumped 58.3% YoY (estimate of 52%) and PAT grew 32.7% YoY (estimate of 23.4%). On a QoQ basis, growth in CC was 6.1% QoQ and ~5.1% in USD terms, excluding the hardware pass-through in the Ind...
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 different...
L&T Infotech: Growth momentum intact, strong near-term visibility (LTI IN, Mkt Cap USD3.9b, CMP INR1653, TP INR1850, 13% Upside, Neutral) In-line quarter, traction among the best in tier-II IT: LTI’s CC revenue growth of 3.5% QoQ (+22.9% YoY) was in line with our estimate. Subsequently, 1HFY19 revenue growth came in 22% YoY, as against +17% YoY in FY18. EBITDA margin expanded 110bp QoQ to 20.5% (our estimate: 20.4%). Gross margin of 35.1% (-10bp QoQ), too, bettered our estimate of 34.7% d...
L&T Infotech: Visibility of mid-teen growth; driven by broad-based momentum (LTI IN, Mkt Cap USD3.3b, CMP INR1223, TP INR1400, 15% Upside, Buy) All-round beat: LTI saw revenue growth of 8.5% QoQ, defying seasonal weakness. Even if were to exclude pass-through revenue (2.2%) and integration of recently acquired Syncordis (0.7%), growth of 5.6% QoQ was above our estimate. EBITDA margin of 17.1% expanded by 30bp QoQ (a beat of 30bp), as the company more than offset the negative impact of pass-t...
​L&T INFOTECH: Strong visibility on continued outperformance; Analyst Day Takeaways(LTI IN, Mkt Cap USD2.9b, CMP INR1064, TP INR1200, 15% Upside, Buy)We attended L&T Infotech’s (LTI) Analyst Day in Mumbai, where the company highlighted (i) its readiness on Digital offerings, (ii) efforts undertaken to align its delivery and (iii) the growth engines needed to continue exhibiting industry leading growth rates. Appended below are our key takeaways from the event:Continued leadership on growth r...
​L&T Infotech: Momentum on solid ground(LTI IN, Mkt Cap USD2.0b, CMP INR818, TP INR950, 17% Upside, Buy)FY18 on track for industry leading revenue growth: 1HFY18 revenue grew 11.7% YoY CC, all organic. LTI has been expecting a better 2H on deal ramp-ups. This momentum will help it navigate FY18 without feeling the pinch of 2H seasonality. 2QFY18 revenue grew 4.4% QoQ to USD271m. In CC terms, revenue growth was 3.5% QoQ, above our estimate of 2.1% (11.7% YoY). EBITDA margin of 16.8% was flat Qo...
​L&T Infotech: 1Q weakness offset by sanguine FY18 outlook(LTI IN, Mkt Cap USD2.0, CMP INR764, TP INR880, 15% Upside, Buy)In-line performance driven by Digital-led growth: LTI’s 1QFY18 revenue grew 1.5% QoQ in constant currency (CC) terms, in line with our estimate. Revenue growth was impacted by project closures and absence of pass-through revenue, resulting in a steep decline in Manufacturing (-13.3% QoQ CC) and Europe (-4.5% QoQ CC). However, growth was supported by strength in IMS and Di...
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