L&T Infotech trades higher for 5th straight day, hits all-time high

The board of directors of the company is scheduled to meet on Wednesday, July 15, to consider the un-audited financial results of the company for the quarter ended June 30, 2020
Shares of Larsen & Toubro (L&T) Infotech hit an all-time high of Rs 2,070 in an otherwise subdued market, up 3 per cent, on the BSE on Wednesday on expectation of earnings recovery in the  second half of the financial year 2020-21. It surpassed its previous high of Rs 2,049 touched on February 14, 2020.

The stock was trading higher for the fifth straight day, gaining 7 per cent in the past one week, as compared to 3.3 per cent rise in the S&P BSE Sensex. In the past three months, L&T Infotech has outperformed the market by surging 52 per cent, as against 22 per cent gain in the benchmark index.

Today, L&T Infotech, a global technology consulting and digital solutions company, announced that it has launched LTI Canvas, a modern software engineering platform that addresses critical need of enabling work from anywhere. CLICK HERE FOR PRESS RELEASE

Besides, the board of directors of the company is scheduled to meet on Wednesday, July 15, to consider the un-audited financial results of the company for the quarter ended June 30, 2020 (Q1FY20).

L&T Infotech remains a strong Tier II player backed by strong and stable leadership and execution track record, which reflects in the steady rise across client revenue buckets and a steadier margin profile (unlike volatility seen in most Tier II techs as well as a few in Tier I), say analysts.

“The company expects mid single-digit decline in Q1FY21. This is expected to be largely driven by weakness in Manufacturing, Energy & Utilities and BFSI, partially offset by low impact in CPG, Pharma, HiTech, Entertainment and Media verticals. Recovery is expected in 2HFY21 considering situation doesn’t worsen further from COVID’s second wave of impact,” Motilal Oswal Financial Services said in a stock update report.

"L&T Infotech’s strong & diversified portfolio, stability in top accounts (recovered in 2H following budget cuts in 1H), and large deal wins (strong sales engine) & steady ramp-up schedule are likely to support its growth outperformance in the sector," analysts at HDFC Securities had said in Q4FY20 results update. The stock, however, was trading above the brokerage’s 12-month target of Rs 1,800 per share.



Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel