The brokerage firm’s opinion about L&T Infotech (LTI) Infotech seems to be good. Edelweiss believes that the company’s performance will be good. It has retained the ‘BUY’ rating assigned to its shares. L&T Infotech (LTI) July-September (2021-22) revenue grew 8.3 per cent to over Rs 3750 crore. This is more than expected. Ebit margin has also increased by 80 basis points to 17.2 percent. Net profit has also increased by 11.1 per cent to Rs 5.5 billion. L&T Infotech’s demand across all verticals and geographies has shown significant growth. The company management believes that such demand is seen only once in a century. Therefore, Edelweiss has increased its target price from Rs 6495 to Rs 7,505.
Increase in company demand
There has been an unprecedented increase in the demand of the company. However, the company is also facing challenges on the supply-side. Like its counterpart companies, it is also facing increased attrition rate. In the last quarter this rate was 15.2 percent but now it has increased to 19.6 percent. The company has recruited 4000 employees in the second quarter.
demand outlook excellent
There is a steady increase in the demand for LTI. This had never happened before. Its revenue can cross two billion dollars in the financial year 2021-22. Profit can also be in the range of 14 to 15 percent. The company has just added a client of 50 million dollars. It has got three more clients of $ 20 million. There are five clients of $ 10 million and five of $ 5 million. In Europe, it has got a deal worth $ 30 million.
rapid growth potential
The company is expected to grow rapidly. Its stock is trading at 31.8 times the estimated value of 2023. Therefore, a target price of 7505 has been kept in it.
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