Get App
Moneycontrol

Co-Partners

Associate Partners

Last Updated : May 06, 2019 05:14 PM IST | Source: Moneycontrol.com

Buy Larsen and Toubro Infotech; target of Rs 1940: ICICI Direct

ICICI Direct is bullish on Larsen and Toubro Infotech has recommended buy rating on the stock with a target price of Rs 1940 in its research report dated May 03, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Larsen & Toubro Infotech


Larsen & Toubro Infotech (LTI) reported revenue growth of 2% QoQ to US$353.8 million (vs. our estimate of 2.5%). Revenue growth was driven by manufacturing (8.3% QoQ) and high-tech, media & entertainment (11.4% QoQ) partly offset by 2.9% QoQ decline in the banking & finance segment (BFS). Decline in BFS was mainly due to challenges in top client. Digital business now constituting 38% of revenues, witnessed growth of 4.7% QoQ and 31.8% YoY in the quarter. EBITDA margin declined 142 bps QoQ to 19.2% on account of a dip in utilisation and investment in sales. Based on large deal wins, strength in diversified niche segments, we expect a healthy performance for the next two years and estimate growth of 15.4% CAGR to US$1796 million in FY19-21E with EBITDA margins of 19.3% in FY21E.


Outlook


Hence, we maintain our BUY recommendation with a revised target price of | 1940/share (~18x FY21E EPS).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on May 6, 2019 05:14 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant