L&T Infotech announces Q4 earnings | What should investors do now; buy, sell or hold?

L&T Infotech

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26 Aug, 2025 12:21

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Larsen & Toubro Infotech share price declined 4 percent in early deals on April 20 after company announced its March quarter earnings.

Larsen & Toubro Infotech on April 19 reported a consolidated profit after tax (PAT) of Rs 637 crore for the quarter ended March 2022, up 17 percent from Rs 545 crore in the corresponding quarter of the previous financial year.

The profit for the quarter improved by 4.1 percent from the reported profit of Rs 612 crore in the December 2021 quarter.

Consolidated revenue came in higher by 31.6 percent at Rs 4,302 crore for the quarter from Rs 3,269 crore in the year-ago period. Revenues during the quarter were higher by 4 percent from Rs 4,137.6 crore registered in the previous quarter.

Dollar revenue during the quarter grew by 27.5 percent on year and 3.1 percent on quarter to $570.4 million.

Broking firm Nomura has kept neutral rating the stock with a target at Rs 5,970 per share.

The rising onsite attrition to be a key challenge in near term, while revenue growth softer than expected due to onsite supply side challenges.

EBIT largely meets estimates but due to savings from SG&A expenses.

Nomura lower FY23-24 EPS estimates by 3%, prefer Persistent in midcap space.

Research house has kept sell rating on the stock with a target at Rs 4,570 per share.

The Q4 was in-line with strong orderbook & exit rate for FY23. The company announced 4 large deals with net new TCV of USD 80 million.

L&T Infotech’s deep domain capabilities, strong partnerships with hyperscalers, and a robust sales engine will continue to drive industry-leading growth rates for the company.

We expect USD revenue CAGR of ~21% over FY22-24, which is at the top end of our Tier II IT coverage universe.

While we remain confident of the management’s execution capabilities, we remain on the sidelines in the stock, led by a significant valuation re-rating.

We value the stock at 30x FY24E EPS. Our TP is Rs 5,710 per share. We maintain our neutral rating.

We cut EPS estimates by 8%/5.5% for FY23/24E led by cut in margins by ~111bps/50bps in FY23/24 and cut in revenue by ~3%. We arrive at DCF based target price of Rs 6369 (earlier Rs 7166) with implied target multiple of 36x P/E on FY24 EPS (earlier: 39x) led by increase in risk free rate and moderation in long term growth rates and margins.

At 09:21 hrs Larsen & Toubro Infotech was quoting at Rs 5,307.40, down Rs 178.75, or 3.26 percent on the BSE.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.