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Last Updated : May 21, 2020 08:26 PM IST | Source: Moneycontrol.com

Buy Larsen and Toubro Infotech; target of Rs 2060: Motilal Oswal

Motilal Oswal is bullish on Larsen and Toubro Infotech has recommended buy rating on the stock with a target price of Rs 2060 in its research report dated May 20, 2020.

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Motilal Oswal 's research report on Larsen and Toubro Infotech


Strong exit growth in FY20 coupled with healthy deal wins reiterates our confidence that L&T Infotech (LTI) could be one of the few outliers reporting revenue/earnings growth in FY21. The company's twisted seasonality (better 2H) should also help it dodge the peak COVID-19 impact (expected over 1H) to an extent. Notwithstanding some price concessions, we expect net margins to remain close to the lower end of the normal year guidance band (14-15%). Top clients/BFSI performance is a key monitorable. We keep our estimates largely unchanged and expect LTI to be a key beneficiary of the accelerated digital adoption in the post COVID-19 world. Reiterate Buy.


Outlook


Industry leading 'growth' plus prudent capital allocation should defend its rich multiples. Our fair valuation is 19x 1-year forward P/E, at 15% discount to TCS. Reiterate Buy.


For all recommendations report, click here


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First Published on May 21, 2020 08:26 pm
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