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Larsen & Toubro Infotech Ltd. Stock Analysis

Large Cap
Evaluated by 1729 users | BSE: 540005 | NSE: LTI |
IT - Software
The Company was incorporated at Mumbai on December 23, 1996 as L&T Information Technology Limited, a public limited company under the Companies Act, 1956. The Company obtained the certificate of commencement of business on March 25, 1997. The name of the Company was subsequently changed to...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Larsen & Toubro Infotech Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 23.93%33.3%42.57%50.83%38.94%35.81%33.36%26.88%30.51%27.81%
Value Creation Index 0.871.612.332.982.051.801.611.101.39NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,2842,9603,6134,6444,7445,5696,1836,9068,90710,184
Y-o-Y Gr. Rt.-29.6%22.1%28.5%2.2%17.4%11%11.7%29%14.3%
Adjusted EPS (Rs.) 17.2725.6134.9946.2444.4543.6548.7251.7573.9676.77
Y-o-Y Gr. Rt.-48.3%36.6%32.2%-3.9%-1.8%11.6%6.2%42.9%3.8%
Book Value per Share (Rs.) 67.1461.6374.3789117.31115.08165.25209.12263.23294.4
Adjusted Net Profit 2794135647467177418318901,2831,332
Net Op. Cash Flow (Rs. Cr.) 2693254836165807651,0477111,2481,644
Debt to Cash Flow from Ops 0.890.760.430.170.370.070000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Larsen & Toubro Infotech Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 18.1%16.5%18.1%14.3%
Adjusted EPS 18%11.6%16.4%3.8%
Book Value per Share 17.920.221.211.8
Share Price - - 47.2% 62%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 26.5338.5149.9255.1942.2338.1133.6426.5930.4426.8
Operating Profit Margin (%) 15.9220.3322.1822.7920.0516.6217.7615.1519.3218.23
Net Profit Margin (%) 12.213.9515.6216.0615.1113.3113.4412.8914.4113.08
Debt to Equity 0.220.250.170.070.120.030000
Working Capital Days 150134124113135128127135123124
Cash Conversion Cycle 12354039454337393942
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.51%
Institutions 17.03%
Non-Institutions 8.46%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of L&T Infotech and arrived at the following conclusion:

Past 10 year's financial track record indicates that L&T Infotech is a good quality company. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company.

Data is not available for this company

The Company was incorporated at Mumbai on December 23, 1996 as L&T Information Technology Limited, a public limited company under the Companies Act, 1956. The Company obtained the certificate of commencement of business on March 25, 1997. The name of the Company was subsequently changed to ‘Larsen & Toubro Infotech’ and the Registrar of Companies, Maharashtra at Mumbai, issued a fresh certificate of incorporation on June 25, 2001.

The company is one

The Company was incorporated at Mumbai on December 23, 1996 as L&T Information Technology Limited, a public limited company under the Companies Act, 1956. The Company obtained the certificate of commencement of business on March 25, 1997. The name of the Company was subsequently changed to ‘Larsen & Toubro Infotech’ and the Registrar of Companies, Maharashtra at Mumbai, issued a fresh certificate of incorporation on June 25, 2001.

The company is one of India’s global IT services and solutions companies. In 2015, NASSCOM ranked the company as the sixth largest Indian IT services company in terms of export revenues. They were amongst the top 20 IT service providers globally in 2015 according to the Everest Group’s PEAK Matrix for IT service providers. Their clients comprise some of the world’s largest and well-known organisations, including 49 of the Fortune Global 500 companies. Besides India, they provide services globally and the percentage of their revenue from continuing operations from North America, Europe, Asia Pacific and the rest of the world.

Business area of the company

The company offers an extensive range of IT services to their clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hi-tech and consumer electronics and automotive and aerospace. Their range of services includes application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions and platform-based solutions. The serve their clients across these industries, leveraging their domain expertise, diverse technological capabilities, wide geographical reach, an efficient global delivery model, thought partnership and ‘new age’ digital offerings.

Major events and milestones:

• 1997: Incorporation of the Company
• 2002: The Company was assessed at the Optimizing Level 5 of the Capability Maturity Model for Software, Version 1.1 by the Software Engineering Institute, Carnegie Mellon University, USA for the Mumbai, Navi Mumbai, Pune, Chennai, Bengaluru and Mysuru development centres.
• 2007: The Company acquired GDA USA, an electronic design services company.
• 2008: The Company established business in South Africa.
• 2010: The Company was appraised at Maturity Level 5 (Optimizing) of CMMI for Development v1.2 for the units at Mumbai, Navi Mumbai, Pune, Bengaluru, Mysuru and Chennai. 
• 2011: The Company acquired transfer agency business unit of Citigroup Fund Services Canada Inc. and renamed it as LTIFST.
• 2013: The Company’s business verticals were re-cast into two clusters- industrials and services.
• 2014: The Company transferred their PES Business unit to LTTSL.
• 2015: The Company acquired ISRC from Otis Elevator Company, USA and Otis Elevator Company (India) Limited, units of United Technologies Corporation.
• 2016: The Company was assessed at maturity Level 5 CMMI-SVC v1.3 for the units at Mumbai, Navi Mumbai, Pune, Bengaluru and Chennai.
• 2016: The Company is positioning to cater to ‘Smart Cities’ opportunities that they have identified.
• 2017: The Company was assessed at Maturity Level 5 CMMI-DEV v1.3 for the units at Mumbai, Navi Mumbai, Pune, Bengaluru and Chennai.

Awards and Accreditations:

• The Company has been recognised as the top company for programs on corporate social responsibility by the International Association of Outsourcing Professionals in the 2016 Global Outsourcing 100 Leader Size Judging Group.
•  Zinnov positioned the Company in the Leadership Zone for Digital Consulting Services in Zinnov Zones for Digital Services, released in 2016. 
•  The Company’s internal newsletter ‘Ping’ received Bronze Award at Association of Business Communicators India’s 55th Awards ceremony held in March 2016.
• Company’s internal digital magazine ‘All Go Rhythm’ received Gold Award at Association of Business Communicators India’s 55th Awards ceremony held in March 2016.
• The Company has won three awards during the World Innovation Congress, 2016 in relation to (i) Financial Crime EDD Automation Solution, which provides automated financial crime enhanced due diligence processes, for being the best innovation in information technology, (ii) MediaHub, which provides cloud based storage and media conversion, for being the most promising new product technology and (iii) MyCar, which connects users to their cars and enables them to manage information in relation to their cars, for being the most innovative product of the year.
• The Company was ranked in the leadership zone for broadcasting sector in Zinnov’s Global Service Providers Rating, 2015.
• The Company, being the implementation partner for the L&T Metro Rail Hyderabad project, was awarded the SAP ACE Award, 2015 in Strategic HR and Talent Management.
• The Company was awarded the Indian Merchants’ Chamber Ramkrishna Bajaj National Quality Award 2015 for performance excellence in the Service Category.
•  One of their employees was awarded the Digital Transformational Leader 2015 Award from Deutsche Messe, Fiera Milano - CeBIT for the Company’s contribution towards digital transformation, using geospatial analytics technology in the insurance industry.
• The Company was awarded the Big Data & Business Analytics Award for Best Analytics Services/ Solution Provider in Predictive Modelling presented to autoMATIC (a telematics based advanced analytics solution) at the World Marketing Congress.
• The Company was conferred with the ‘Innovation in Big Data’ Award by the NetApp Innovation Awards in the year 2015.
• The Company was conferred with the three awards at the World Innovation Congress, 2015 in the Technology, Innovators and Entrepreneurs categories and five awards from the World HRD Congress, 2015 in relation to their Indian operations, including training organisation of the year, best leadership development for middle management, best leadership development program for top management, and most innovative use of training and development as an HR initiative for OD.
• The Company was awarded the Honda North America 2014 Performance Excellence Award in the year 2014.
• The Company has won two awards during the World Innovation Congress 2014 in relation to Sapphire, an open source-based social media analysis solution for being the Most Promising New Product- Information Technology and in relation to Campus Next, a Cloud enterprise solution for academic institutes for the Best Innovative On- Line Service in the year 2014.
• The Company was awarded with the Edge Award for implementation of 1-View, a customisable master data management solution, at INTEROP-2013 conference in the year 2013.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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