Home / Markets / Stock Markets /  This IT stock is among Angel Broking's top picks for the month

Larsen and Toubro Infotech (LTI) is among the top stock picks for the month of August 2021 by domestic brokerage and research firm Angel Broking. LTI is a midcap IT company in India, which is part of the L&T group and provides services like ADM, Enterprise solutions, Infrastructure management to name a few.

Expressing the rationale, the brokerage said that the company has a very strong presence to the BFSI & manufacturing verticals which accounts for around 45% and 17.5% of the IT company’s revenues and are amongst the least impacted verticals due to the shutdown on account of Covid-19. Additionally, the company does not have a very large exposure to service oriented verticals like travel & Tourism which are amongst the worst impacted due to the Covid–19 outbreaks, it said in the note.

LTI has been growing significantly faster than both mid and large cap peers over the past few years on the back of strong deal wins and Angel expects the outperformance to continue for the company. ‘’We expect the company to post revenue/EBITDA/PAT growth of 18.6%/22.9%/22.4% between FY20-FY23 given a strong deal pipeline and increased demand for digital solutions,'' it added. The brokerage has a target price of 5,200 per share on the L&T Infotech stock.

The IT firm had reported a 19% rise in consolidated net profit to 496.8 crore for the June 2021 quarter as compared to 416.4 crore in the same period a year ago. The company's revenue was up 17.4% to 3,462.5 crore in the reported quarter from 2,949.2 crore in the year-ago period.

"We are pleased to report our best ever Q1 sequential growth of 5.1 per cent, driven by holistic growth across our verticals, service lines, client pyramid and geographies. Our healthy pipeline and continued strong demand make us confident of our future growth," LTI CEO and Managing Director Sanjay Jalona had said on its quarterly earnings announcement.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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