Why Sharekhan is Bullish on L&T Infotech

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Why Sharekhan is Bullish on L&T Infotech

By Aditya Raghunath

Investing.com -- Larsen & Toubro (NS: LART ) Infotech Ltd (NS: LRTI ) shares have rallied 53% in 2021 so far. The company is bullish about its growth path. A month back, it said that it would be hiring 4,500 freshers this fiscal compared to 3,000 freshers it hired last fiscal.

At the end of the June 2021 quarter, the company had a total payroll of 38,300 employees of whom 78% were deployed at the company’s offshore centers.

Angel Broking in a recent report has said that L&T Infotech is one of the fastest growing mid cap IT companies in India. The company provides services like ADM, enterprise solutions, infrastructure management services etc.

One factor where L&T scores big is that BFSI and manufacturing contribute to a large chunk of its revenues, around 45% and 17.5% respectively. Both these verticals are recovering very speedily after the lockdowns. It doesn't have a very large exposure to service-oriented verticals like travel & tourism which were among the worst-impacted sectors during the pandemic.

Brokerage firm Sharekhan is bullish on the stock and has a buy call on it with a target of Rs 5,750. It said, “LTI is well poised for another year of industry-leading growth in FY2022, led by strong growth in top accounts, recovery in impacted verticals, healthy deal pipeline, and improving demand for its cloud and data products business.”

The stock closed at Rs 5,665 on September 16.

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