Ajcon Global has come out with its report on L&T Infotech IPO. The research firm has recommended to "Subscribe" the IPO in its research report as on July 06 , 2016.
Ajcon Global's research report on L&T Infotech IPO
L&T Infotech was incorporated in 1996 (part of renowned L&T Group) and is one of India’s global IT services and solutions companies. In 2015, NASSCOM ranked it as the sixth largest Indian IT services company in terms of export revenues. It is amongst the top 20 IT service providers globally in 2015 according to the Everest Group’s PEAK matrix for IT service providers. Its clients comprise some of the world’s largest and well known organizations including 49 of the Fortune Global 500 companies. L&T group foray into services business (L&T Infotech, L&T Realty, L&T Finance Holdings) has helped the group to withstand the setbacks of L&T Hydrocarbon’s business in Middle East. The number of employees grew from 17,000 to 20,000 in three years with employee utilization improving from 71.6% to 73.8% in FY16.
At the upper end of the price band of Rs. 710, the IPO is valued at 12.6x at FY16 Post issue P/E which is cheap as compared to its immediate peers. With due consideration to factors like a)strong domain focus enabling Business to-IT Connect, b)strong parentage and brand equity of the Promoter, c) established long – term relationships with its clients, d) extensive portfolio of IT services and solutions, focus on emerging technologies, e) track record of established processes and executing large, end to end, mission critical projects, f) conducive work environment to attrat and retain talent, g) track record of strong financial performance, h) lean balance sheet with virtually no debt, i)robust ROE of 45%, j) no Brexit impact, we recommend investors to “SUBSCRIBE” the issue.
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