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MUMBAI : Mumbai: Shares of Larsen and Toubro Infotech Ltd on Friday reached the 1 trillion market capitalization mark, with the company’s stock rising over 60% year-to-date.

In intraday trade, the stock gained 2% to hit a record high of 5,781 on BSE. At the end of the day’s trade, the scrip settled at 5,712.80, up 0.8% from its previous close.

It is the fifth Indian IT firm and second L&T Group firm to achieve the milestone. The largest engineering firm in India, Larsen and Toubro Ltd’s m-cap is at 2.39 trillion. L&T Infotech, one of the fastest growing mid-cap IT firms, offers services such as application data management, enterprise solutions and infrastructure management.

BFSI or banking, financial services and insurance, and manufacturing contribute 45% and 17.5%, respectively, to its revenues and were among the least hit verticals during the covid-led lockdowns. It does not have a very large exposure to service-oriented verticals such as travel and tourism—among the worst-hit during the pandemic.

“L&T Infotech has been growing significantly faster than mid- and large-cap peers over the past few years on the back of strong deal wins and we expect the outperformance to continue for the company. We expect it to post revenue, Ebitda, PAT, growth of 17.9%, 20.5%, 20.5% in FY20-FY23, given a strong deal pipeline and increased demand for digital solutions," said Angel Broking in a note to investors. The brokerage has an accumulate rating on the stock and increased its target price to 5,950. Ebitda is short for earnings before interest, taxes, depreciation and amortization. PAT is profit after tax.

In the June quarter, the management said it was fairly confident of sustaining the growth momentum and delivering top quartile revenue performance in FY22E, considering the robust deal intake, healthy deal pipeline and client mining. It expects FY22 net profit margin at 14-15%. Despite the absence of large new deal wins in the first quarter, L&T Infotech said a strong demand environment, led by a robust deal pipeline, will help. “We expect L&T Infotech to deliver revenue growth on the higher end of our coverage universe (FY21-23E USD revenue CAGR of 18%), aided by deal traction, a strong client mining ability and supportive demand environment," Motilal Oswal said.

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