18 LTI share price target reports by brokerages below. See what is analyst's view on LTI share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
It was a stellar quarter on the revenue execution front and healthy margin expansion. In the near term, we expect the company to face headwinds in terms of pricing pressure, lower discretionary spend and delay in deal ramp ups. However, we expect LTI to see a revival in H2FY21E based on ramp up in deals won and recovery in troubled verticals. Further, the company has delivered strong double-digit revenue growth consistently, delivering industry leading growth, higher return ratios and is expected to do so post crisis. Hence, we remain positive on the stock from a long-term perspective. As a result, we maintain BUY rating on the stock with a target price of Rs 2050/share (19x PE on FY22E EPS).
WeexpectLTItogrowitsrevenueaheadofitslarger/similarsizepeers in the near future; as it would breakaway into the big league. We have factored in a 13%/14% revenue/earnings CAGR over FY20-22E with an Accumulate rating on the stock, with a TP of Rs. 2,120, valuing it at 19x FY22E EPS (in line with its 3 year mean; implies ~1.5x on a PEG basis).
LT Infotech’s 3QFY20 results beat our estimates on topline. EBIDTA margin was inline with our estimates. However, lower other income led to PAT miss our estimates. Led by 3QFY20 revenue beat, we raise LTI’s USD revenues assumptions 12.7/15.7% for FY20/FY21E (vs 10.8/13.3% modelled earlier). We note LTI delivered 18% organic USD revenue growth in FY19 and weak 4QFY19 exit and softer start in H1FY20 led to revenue growth moderation in FY20E. We expect revenue growth acceleration back in FY21E. We upgrade our EPS estimates by 3.5/5.3% for FY21/FY22E led by USD revenue upgrade. With annual revenues of USD1,520mn for FY20E and headcount of 31,450 employees as on 3QFY20, LTI is a scale vendor among midcap peers. Company also enjoys well spread vertical mix and service mix (vs midcap peerset). LTI trades at 19.5x FY21E EPS which is 16% discount to TCS. We believe LTI’s revenues can grow at 2x the pace of TCS in FY21E which can help sustain premium P/E multiples. Assume coverage with Add rating and TP of Rs2090 (18.5x Dec21E EPS). Our target multiple for LTI is at 14% discount to our target multiple for TCS (21.5x Dec21E EPS).
We maintain BUY on L&T Infotech (LTI) following rev beat/in-line margin performance and ~7% EPS increase. Broad-based growth drivers and strong uptick in large account provide growth visibility. Our TP of Rs 2,090 is based on 18x Dec-21E EPS.
The results offer comfort that client-specific issues faced over 9MCY19 are largely behind. Moderating attrition also comes in as a positive. Recent large deal wins hint at strong growth over the next 12 months. Besides, LTI’s recent client addition across buckets was the strongest and broad-based v/s comparable prior periods. Given its account mining capabilities, this should provide good headroom for incremental growth. Industry leading growth + prudent capital allocation should defend rich multiples, in our view. We arrive at a fair valuation of 19x one-year forward P/E, at a 15% discount to TCS. Maintain Buy.
Bandhan Bank’s robust business traction & customer acquisition is poised to continue post-merger. The bank continues to envision being a pan-India player and intends to leverage distribution network of both entity for cross selling. Given robust growth and superior asset quality, we remain positive on business growth as well profitability, along with steady asset quality. However, the recent situation in the north eastern state with substantial exposure and integration of Gruh Finance is seen keeping the growth trajectory moderate in the near term. Therefore, we downgrade our estimate marginally and expect earnings to grow at 26% CAGR in FY20-22E. Accordingly, we revise our target price to | 650/share, valuing the stock (post merger) at 19x FY22E EPS (4.5x FY22E BV). We maintain BUY rating.
We have always liked LTI, as we believe it has strong ingredients of being a sustainable growth engine considering the basis :1) Strong in high growth digital solutions, 2) Growth Momentum in high large client deals & deal pipeline, 3) Higher focus on M&A, 4) Strong focused team in place & 5) Higher offshore revenues to protect margins structurally. On the basis on strong rebound from BFSI vertical, we increase our EPS by 2.5%/3.7%/4.3% for FY20E/21E/22E led by increase in revenue growth estimates. We except revenue & EPS CAGR for FY20-22E to be at 13.3% & 19.1% respectively. We value LTI now on 19x earnings multiple (earlier 18x) to arrive at a changed target price of Rs.2119 (earlier: Rs.1825). LTI is currently trading at 18.7x/16.1x earnings multiple. Upgrade to ‘BUY’ from ‘Accumulate’.
Management commentary on H2FY20E being stronger compared to H1FY20, niche capabilities in the industries sub segments and large deal pipeline enhance growth visibility. Further, the outlook for sustaining profit margins in the midst of rising cost pressures prompt us to be positive on the stock. Currently, it is trading at ~15x on FY22E EPS while EPS growth over FY20-22E is expected to be 14.0%. Hence, we maintain our BUY rating on the stock with a revised target price of Rs 2025/share (17.5x FY22E EPS).
Focus on digital transformation: The company has a strong focus on digital transformation. Digital business is now contributing 40% to the total revenue. The company has reskilled ~50% of talent over the last year in AI Cloud computing, Safe Agile and Data Visualization. The management plans to create an ecosystem for talent for which it is collaborating with startups and academia. We recommend a BUY on this stock with a TP of Rs 1,800.
LTI’s rupee revenues and net profit have grown at 29.3%, 36.2% YoY, respectively, in FY19. The management commentary on H2FY20E being stronger compared to H1FY20, niche capabilities in industries sub segments and large deal pipeline enhance the growth visibility for FY21E. Further, the outlook for sustaining profit margins in the midst of rising cost pressures prompt us to be positive on the stock. Currently, it is trading at ~16x on FY21E EPS. Hence, we maintain our BUY recommendation on the stock with a revised target price of Rs 1880/share.
LTI sales & marketing initiatives are driving strong growth for the company. LTI has laid out sales strategy framework three years ago & it focusses mainly on large deal wins, growing top accounts & focusing on strategic alliances. It is aggressively focusing on large deals and new logo additions – won 19 large deals with 9 new logos in past 14 quarters, with combined TCV of large deals at ~USD 900 mn. Management is confident of strong H2FY20 on ramp-up of deals won earlier. Besides, over the last one year, LTI’s client addition across buckets was the strongest and broad-based & along with the company’saccount mining capabilities, we expect LTI revenue growth to accelerate in FY21. We value LTI on Sep-21 earnings (Rs.107.3) & arrive at an unchanged target price of Rs. 1825 (valued at 17x Sep-21 earnings). Maintain Accumulate. Ongoing investigation by US Immigration & Custom Enforcement (ICE) will remain an overhang.
Weakness in key accounts along with concerns around an immediate integration with Mindtree saw its multiple correcting ~27% from its peak over the last 12-15 months. As these concerns are largely behind, we upgrade the stock to Buy. Our TP of INR2,030 implies 7% re-rating to 19x 1-year forward P/E, at 15% discount to the market leader (TCS).
Strong quarter on revenue execution front, receding of client specific issues, deal winning momentum and better outlook for banking segment (led by recoup in top client & large deal win) gives us a belief of improving trajectory ahead. In light of these factors, we revise our recommendation from HOLD to BUY with revised target price of Rs 1870.
We maintain BUY on L&T Infotech (LTI) following an in- line rev/margin performance and unchanged est. Large deal wins, deal ramps and reduction in client-specific challenges provide growth visibility (2H acceleration). Our TP of Rs 1,845 is based on 18x Sep-21E EPS.
HDFCB saw strong earnings performance at Rs63.5bn (PLe: Rs60.1bn) on back of lower tax rate & steady operating performance. Although, NII growth was slower at 15% YoY on back of solid growth in term liabilities but was offset by both strong fees & treasury gains. Asset quality was quite stable with slippages & w.off down sequentially and commentary on delinquencies in portfolios was steady. On prudent basis, bank used the lower tax rate to make another Rs6.6bn of contingency provisions and passing Rs4.5bn of net effect (post DTA) to earnings. Continued penetration provides strong access to sticky customer base and with steady asset quality trends, NIMs of 4.2- 4.3% and ROEs of 18-19%, HDFCB continues to remain on strong path. Retain BUY with TP of Rs1,406 (unchanged) based on 3.7x Sep-21 ABV.
We maintain BUY on L&T Infotech (LTI) post a soft (in- line) 1QFY20. Cut estimates by ~4% to factor near-term client-specific challenges, however deal wins provide growth visibility. Our TP of Rs 2,115 is based on 20x Jun- 21E EPS.
We like LTI based on its digital story, strength in diversified niche segments & core modernisation, ability to win large deals and better margin profile vs. industry peers. However, near term concerns of client specific challenges and currency headwind prompt us to revise our EPS estimates downwards by ~10-11% in FY20E to FY21E. Hence, we downgrade the stock from BUY to HOLD with revised target price of | 1,710 (18x FY21E EPS).
LTI top client in it’s latest earnings call was cautious about IT spending & has intended to increase more focus towards cost rationalization. We believe weakness of top client & further decline in financial services vertical (BFS accounts to ~28% of total revenues) will weigh on the growth of FY20E. We cut our revenue estimates by ~2% in FY20E & ~3% in FY21E. We cut our margins by 42bps & 100bps for FY20E & FY21E to factor higher S&M spends & spike in attrition (+320bps YoY to 18.3%) may lead to salary hike & may put execution risk. We downgrade LTI from Buy to Accumulate & value LTI at 17X FY21E multiple at an EPS of Rs.85 & Rs. 100 to arrive at a changed target price of Rs. 1701 (earlier: Rs.1981). LTI is currently trading at 18.4x/15.8x FY20E/21E earnings multiple.
We estimate LTI to post revenue/PAT growth at a CAGR of 17%/12% respectively over FY19-21E. LTI’s FY19 revenue has grown in double digit (constant currency) for third consecutive year and would continue to be among top quartile (among top 2 player) in terms of growth. With revenue growth in the top quadrant of the industry and operating margins in high teens, LTI is likely to sustain its industry leading performance. We maintain a BUY with a target of Rs. 1,950
Although growth in the top client remains a concern, acceleration of its digital story, large deal pipeline, strength in diversified niche segments and better margin profile compared to industry peers would lead to healthy operating performance. Hence, we maintain our BUY recommendation with a revised target price of Rs 1940/share (~18x FY21E EPS).
We believe weakness of top client will weigh on the growth of FY20E. We cut our revenue estimates by ~2% in FY20E & ~1% in FY21E. We cut our margins by 80bps & 30bps for FY20E & FY21E to factor higher S&M spends & spike in attrition (+100bps QoQ to 17.5%) may lead to salary hike. Despite headwinds ahead in top client & margins, we expect LTI to deliver revenue growth of 14% & 15% in FY20E & FY21E respectively. We value LTI at 18X FY21E multiple at an EPS of Rs.93 & Rs. 110 to arrive at a changed target price of Rs. 1981(earlier: Rs.2032).
We like LTI given its- 1) digital story acceleration, 2) focus on client mining, 3) healthy deal pipeline and 4) strong management foothold. Hence, we believe it is better positioned with relatively higher revenue/margin visibility. We expect LTI to witness healthy double digit revenue growth of 16.7% CAGR in FY18-21E in dollar terms with stable EBITDA margins of 19.3% and net profit margins of 15% in FY21E. Thus, we initiate coverage on the stock with a BUY recommendation and a target price of | 1950/share based on 18x FY21E EPS. In our view, our target multiple for LTI is justified considering the robust growth trajectory implying a PEG ratio of 0.8x and strong return ratio (RoCE – 34.4% in FY21E).
We estimate LTI to post revenue/PAT growth at a CAGR of 21%/21% respectively over FY18-21E. It has given consistent double digit cc growth (YoY) for more than 8 straight quarters ending Q3FY19 and would continue to be among top quartile (among top 2 player) in terms of growth. We value LTI at 19x FY21E given the growth prospects on the back of strong client mining, opening of new logos (Clients), L&T’s parentage benefit and focus on acquiring capabilities to arrive at a target price of Rs 2,138 (31% upside).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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