Fundamental Analysis of L&T Infotech Stock

L&T Infotech is a global technology consulting and digital solutions company that is catering to the large demand for IT services across the world. It recently made headlines as its stock price soared to a record high of Rs 7564.95 after it reported a strong 8.79% QoQ growth in quarter 2 of FY-22. It was ranked the 6th largest IT services company in India and ranked 35th in the Business World India rankings for Most Sustainable Companies 2020. 

With constantly evolving technology, the IT industry continues to be a key sector of the economy. The Indian IT industry accounted for roughly 8% of India's GDP in 2020. India is still among the largest exporters of IT, and our exports alone constitute 79% of the industry's total revenue. The pandemic may accelerate digital IT spending. Estimates show that the global economy will grow at a rate of 6%. But these estimates continue to be subject to modifications as the economic recovery majorly depends on the success rate of vaccines while new variants emerge. LTI's major strength lies in having good exposure to business verticals. This is because they benefit to a huge extent from their parent organisation, L&T's vast portfolio.

The following topics are covered under our analysis:

- Introduction of L&T Infotech (Background and Industry Outlook)

- Leading Indicators

- Interpretation of Financial Statements

- Common-Size and Trend Analysis

- DuPont Analysis (three way)

- Comparative Analysis

- Market Strength and Final Call (Buy, Sell or Hold the Stock)

Please find attached a pdf and excel file for the detailed analysis of L&T Infotech

LTI Fundamental Analysis.pdf

Download PDF • 730KB

Financial Statement Analysis.xlsx

Download XLSX • 284KB

Notable Contributions:

Farwizah Zakariya- Introduction, cash flow statement analysis, profitability and efficiency ratios

Sai Sruthi.S- Introduction, common size analysis, liquidity and solvency ratios

The completion of this report was possible due to the guidance of Professor Ankur Mehra, PhD. Assistant Professor| Department of Finance, Accounting & Control- School of Management & Entrepreneurship, Shiv Nadar University.