L&T Infotech premium valuations to sustain, strong show leads to rerating

The company has indicated that domain knowledge and micro-vertical focus will help it win large deals

Given the industry-leading growth, robust deal pipeline and favourable tailwinds, analysts are now valuing the company at about 22 times (price to earnings or P/E ratio) from the previous 18-20 times one-year forward multiple.

 

The L&T Infotech stock has been rerated after the company reported strong June quarter results. India’s sixth largest information technology (IT) services company is the only large mid-cap IT services player to have posted 20 per cent plus year-on-year growth in each of the last three quarters. Given the industry-leading growth, robust deal pipeline and favourable tailwinds, analysts are now valuing the company at about 22