Fundamental Analysis

LARSEN & TOUBRO INFOTECH LTD 

Ticker : 540005
BUY : Rs 4,879.45  
Target : Rs 5,450

Larsen & Toubro Infotech is a global technology consulting & digital solutions company that has helped more than 435 clients to succeed in a converging world. On the consolidated quarterly front, the company recorded an increase of 17.4 per cent in the net sales and operating income that stood at Rs 3,462.50 crore for Q1FY22 as compared to the net sales & operating income of Rs 2,949.20 crore reported for Q1FY21. The operating profit rose by 16.95 per cent to reach Rs 769.30 crore in Q1FY22 from Rs 657.80 crore posted in Q1FY21. The company reported a net profit of Rs 496.80 crore in Q1FY22 as compared to Rs 416.40 crore recorded in Q1FY21, exhibiting a growth of 19.31 per cent. The demand for digital transformation is significantly higher as compared to the pre-pandemic period, spreading across verticals and markets. Hence, owing to the strong demand outlook, we recommend BUY for this stock.