L&T Infotech: Why we sense an opportunity in the current weakness
While the valuation will appear to be optically expensive, investors should use the current weakness to buy into a growth play like L&T Infotech to ride the multi-year technology upcycle
May 11, 2021 / 11:38 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The stock of L&T Infotech (LTI; CMP: Rs 3,665, Market Cap: Rs 64,053 crore) has been a clear winner in the pandemic. With very little exposure to troubled verticals and end-to-end offerings, order flow as well as execution have been ahead of the industry average.
While the numbers continue to show strength, the company, in a recent communication, alluded to higher investment in FY22 to beef up supply as well as to gain market share that could marginally suppress margins....