L&T infotech

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valuepicker
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L&T infotech

Post by valuepicker » Sat Nov 11, 2017 8:54 am

L&T infotech is on a growth path with new management in place. It's growing at 14% much higher than industry average and improved profitability in last 6 quarters. As per the grapewine they are going to announce 2 large size deal of 800m$ and 300 m$ in couple of weeks. These deals are for a large global bank and a global comsmetics company. Some of this is getting factored in the surge in price after quartly results. The stock is still highly undervalued with PE of just 15 . Must track and own this ugly duckling ..

Pee Vee
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Re: L&T infotech

Post by Pee Vee » Sat Nov 11, 2017 11:06 am

valuepicker wrote:L&T infotech is on a growth path with new management in place. It's growing at 14% much higher than industry average and improved profitability in last 6 quarters. As per the grapewine they are going to announce 2 large size deal of 800m$ and 300 m$ in couple of weeks. These deals are for a large global bank and a global comsmetics company. Some of this is getting factored in the surge in price after quartly results. The stock is still highly undervalued with PE of just 15 . Must track and own this ugly duckling ..
Good point. It is also a high-quality blue-chip stock which means that the downside risk of a capital loss if things don't work out is virtually nil.

valuepicker
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Re: L&T infotech

Post by valuepicker » Wed Dec 13, 2017 11:44 pm

l&T infotech aquires syncordis a specialist in banking solutions. Stock has rallied on back of this information There is still lot of steam left in this undervalued script. Target price of 1300 is being talked...
Any view on what's the fair price of this quality stock?

Pee Vee
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Re: L&T infotech

Post by Pee Vee » Thu Dec 14, 2017 9:53 am

valuepicker wrote:l&T infotech aquires syncordis a specialist in banking solutions. Stock has rallied on back of this information There is still lot of steam left in this undervalued script. Target price of 1300 is being talked...
Any view on what's the fair price of this quality stock?
L&T Infotech is an excellent stock. Very high quality management and reasonable valuations. These are stocks to buy and forget and not worry about price targets.

It is good that you have the stock in your portfolio. I agree that the stock is undervalued and has a lot of steam left.

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Ravi
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Location: Mumbai

Re: L&T infotech

Post by Ravi » Thu Dec 14, 2017 10:38 pm

Pee Vee wrote:
valuepicker wrote:l&T infotech aquires syncordis a specialist in banking solutions. Stock has rallied on back of this information There is still lot of steam left in this undervalued script. Target price of 1300 is being talked...
Any view on what's the fair price of this quality stock?
L&T Infotech is an excellent stock. Very high quality management and reasonable valuations. These are stocks to buy and forget and not worry about price targets.

It is good that you have the stock in your portfolio. I agree that the stock is undervalued and has a lot of steam left.
Motilal Oswal has recommended buy of L&T Infotech - Strong visibility on continued outperformance. A good opportunity to buy.

Strong visibility on continued outperformance

Analyst Day Takeaways

We attended L&T Infotech’s (LTI) Analyst Day in Mumbai, where the company highlighted
(i) its readiness on Digital offerings, (ii) efforts undertaken to align its delivery and (iii) the
growth engines needed to continue exhibiting industry leading growth rates. Appended
below are our key takeaways from the event:
 Continued leadership on growth rates: LTI has led industry growth over the
past on account of a high composition of Digital revenue (32% of total),
superior client mining abilities (75% of incremental growth over the last three
years, led by top 20 accounts) and timely investments in the business.
Positioning because of progress on all these vectors has been favorable,
leading to continued expectations of revenue growth pick-up in FY18 and
positive momentum in FY19.
 Supported by strong visibility: Visibility for continued outperformance for LTI
comes from [1] the uptick it has seen in large deal wins, TCV of which over the
last six quarters has totaled USD300m, [2] strong deal pipeline, 59% of which is
in proposal stage, 36% is Digital and 20% is with new logos, [3] the addition of
65 new logos in the last 12 months, many of them being in the USD1m+
bracket and [4] significantly higher growth than industry average in four
verticals (59.5% of revenue) and four service lines (53% of revenue).
 Steady outlook on margins led by investments…: LTI maintained its target net
profit margin band of 14-15%, despite the strong revenue outlook.
Performance on margins is being capped because of a calibrated investment
approach taken by the company. Prioritizing growth, LTI has been investing
heavily in augmenting its offerings and fueling its sales/marketing engines.
Levers for maintaining stability at the operating level are in the form of higher
digital revenue, operational excellence, cost optimization and prudent risk
management.
 …to up Digital offerings…: While Digital constitutes 32% of total revenue,
because of its ADEA (Analytics and Digital in Every Account) initiative, 88% of
LTI’s clients have been penetrated with at least one of these services. Its
strategy of digitizing the core, adopting a subscription model, pivoting on
platforms and productizing its services, combined with leveraging of its
MOSAIC platform, has resulted in a set of cutting-edge capabilities executed
using next-gen delivery models.
 …and to augment the sales function: The sales team at LTI has seen a major
overhaul, with 65% of the team hired over the last two years. A few of the
progress metrics are as follows: [1] account mining is being driven by the
Minecraft program, which focuses on the top 50 clients, [2] new logos are
being targeted in a very selective fashion, [3] efforts are undertaken for a
proactive pipeline generation using 100+ industry experts, [4] tail accounts are
being elevated by moving them to the USD1m+ category and [5] a high-quality
pre-sales team is set up, with 40% of it being onsite.

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Pee Vee
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Re: L&T infotech

Post by Pee Vee » Tue Jan 09, 2018 9:56 am

There is a buy report by IDBI Capital on Larsen & Toubro Infotech (LTI).

"Larsen & Toubro Infotech (LTI)

A Sustainable Growth Engine

Summary

We initiate coverage on Larsen & Toubro Infotech (LTI) with BUY and street-high TP of Rs1,300 based on PER of 16x FY20E which is at the top-end of the 1-year forward PER band of 9.8x-15.4x since its listing in July, 2016.

We believe that LTI has all the ingredients of being a sustainable growth engine – 1) strong presence in high growth digital solutions (32% of revenue), 2) growth momentum in large clients, deals & deal pipeline, 3) higher focus on M&A and 4) dream team in-place.

We expect LTI to continue to outperform the sector and forecast FY17-20E revenue (US$) and EPS CAGR of 13.9% and 12.7% with an average RoE of ~29%. Our FY19/20 EPS is 6%/12% above consensus. Strong surplus cash of Rs19.4 bn in FY18E (~10% of CMP) augers well for M&A which would provide upside triggers to our forecast.

Key Highlights and Investment Rationale

Excellent track record as regards large clients and deals

LTI’s ‘Minecraft’ program for account mining and ‘ADEA’ (Analytics & Digital in Every Account) has enabled it to drive growth in large clients. LTI already has 54 fortune 500 clients (5 added since Q1FY17) which provide its strong potential for growth. In the last 6 quarters LTI has secured large deals with new business TCV of US$300mn+ and has a strong deal pipeline of US$2bn (20% is from new clients or from clients secured in the last 4 quarters).

Sector outperformance is sustainable

LTI has reported CQGR of 2.8% in the last 6 quarters. We are confident of LTI maintaining the growth momentum and forecast its revenue to grow at a CAGR of 13.9% over FY17-20E. We forecast this to be driven by digital solutions (32% of revenue) which we forecast to grow at a CAGR of 36% over FY17-20E.

Strong growth performance warrants premium valuation

Since its listing in July 2016, LTI has traded at a 1-year forward PER band of 9.8x to 15.4x. We forecast FY17-20E revenue (US$) and EPS CAGR of 13.9% and 12.7%. Given the strong growth we believe that LTI would continue to trade at the top-end of the band and assign target PER of 16x on FY20E.
"

valuepicker
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Re: L&T infotech

Post by valuepicker » Tue Jan 09, 2018 11:40 pm

Keep accumulating this stock on declines. This is going to be a great compounder.. There are not any stories like this in midcap IT space.. Rerating if the stock on card on announcement of South African bank deal

valuepicker
Posts: 129
Joined: Mon Jan 09, 2017 8:44 am

Re: L&T infotech

Post by valuepicker » Wed Jul 11, 2018 5:27 pm

L&T infotech has crossed 1800 mark and closed today at 1790 at back of impressive TCS results.
Quarterly results of L&T infotech are to be declared on 23rd July. Last quarter results gave impressive growth in topline and bottomline of the company. Weak rupee will aid margins and topline in indian currency. Results of Q1 are expected to be better than last quarter. Today it has broken previous high of 1750 and on back of good Q1 results it is likely to rally upto 2000 mark.

valuepicker
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Re: L&T infotech

Post by valuepicker » Mon Jul 23, 2018 7:23 pm

L&T infotech has posted impressive results

 Revenue at Rs 21,557 million; growth of 7.7% QoQ and 29.0% YoY
 Net Income at Rs 3,612 million; growth of 24.8% QoQ and 35.2% YoY

FIIs and FPIs have turned bullish on L&T infotech and have increased their exposure to 8 percent. On back on impressive results it should cross 2000 and settle at 2150.

mjayaprakash
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Re: L&T infotech

Post by mjayaprakash » Sat Aug 04, 2018 8:32 am

BIG applause to you @VALUEPICKER, the stock has just doubled in less than an year after you posted in this forum.

Unfortunately I didn't buy when you shared the idea :idea: here for the group's benefit.

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