BSE:540005

Stock Analysis Report

Larsen & Toubro Infotech

Executive Summary

Larsen & Toubro Infotech Limited, a technology consulting and digital solutions company, provides information technology (IT) services and solutions in India, North America, Europe, the Asia Pacific, and internationally.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

How has Larsen & Toubro Infotech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540005's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.4%

540005

2.0%

IN IT

-3.0%

IN Market


1 Year Return

-17.3%

540005

-15.3%

IN IT

-29.2%

IN Market

Return vs Industry: 540005 underperformed the Indian IT industry which returned -15.5% over the past year.

Return vs Market: 540005 exceeded the Indian Market which returned -29% over the past year.


Shareholder returns

540005IndustryMarket
7 Day-8.4%2.0%-3.0%
30 Day-30.3%-19.0%-26.9%
90 Day-20.9%-18.6%-28.5%
1 Year-15.9%-17.3%-12.6%-15.3%-27.7%-29.2%
3 Year106.7%95.8%35.3%27.0%-15.2%-19.9%
5 Yearn/a30.5%18.0%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Larsen & Toubro Infotech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Larsen & Toubro Infotech undervalued compared to its fair value and its price relative to the market?

16.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540005 (₹1392.2) is trading above our estimate of fair value (₹1100.3)

Significantly Below Fair Value: 540005 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540005 is poor value based on its PE Ratio (16.4x) compared to the IT industry average (7.4x).

PE vs Market: 540005 is poor value based on its PE Ratio (16.4x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 540005 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 540005 is overvalued based on its PB Ratio (4.6x) compared to the IN IT industry average (0.6x).


Next Steps

Future Growth

How is Larsen & Toubro Infotech forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540005's forecast earnings growth (15.1% per year) is above the savings rate (6.5%).

Earnings vs Market: 540005's earnings (15.1% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: 540005's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540005's revenue (12.8% per year) is forecast to grow faster than the Indian market (9.1% per year).

High Growth Revenue: 540005's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540005's Return on Equity is forecast to be high in 3 years time (27.6%)


Next Steps

Past Performance

How has Larsen & Toubro Infotech performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540005 has high quality earnings.

Growing Profit Margin: 540005's current net profit margins (14.2%) are lower than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: 540005's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: 540005's earnings growth over the past year (3.2%) is below its 5-year average (14.8% per year).

Earnings vs Industry: 540005 earnings growth over the past year (3.2%) underperformed the IT industry 7.2%.


Return on Equity

High ROE: 540005's Return on Equity (27.9%) is considered high.


Next Steps

Financial Health

How is Larsen & Toubro Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: 540005's short term assets (₹56.3B) exceed its short term liabilities (₹18.4B).

Long Term Liabilities: 540005's short term assets (₹56.3B) exceed its long term liabilities (₹8.6B).


Debt to Equity History and Analysis

Debt Level: 540005 is debt free.

Reducing Debt: 540005 has no debt compared to 5 years ago when its debt to equity ratio was 9.9%.

Debt Coverage: 540005 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 540005 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 540005 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 540005's debt is covered by short term assets.


Next Steps

Dividend

What is Larsen & Toubro Infotech's current dividend yield, its reliability and sustainability?

2.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540005's dividend (2.01%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 540005's dividend (2.01%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540005 has been paying a dividend for less than 10 years.

Growing Dividend: 540005's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), 540005's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540005's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Sanjay Jalona (50yo)

4.58s

Tenure

₹210,340,000

Compensation

Mr. Sanjay Jalona has been the Chief Executive Officer and Managing Director at Larsen & Toubro Infotech Limited since August 10, 2015. Mr. Jalona served as Global Head of High-Tech & Manufacturing & Engin ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD2.81M) is above average for companies of similar size in the Indian market ($USD792.15K).

Compensation vs Earnings: Sanjay's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjay Jalona
CEO, MD & Director4.58yrs₹210.34m0.080% 193.1m
Ashok Sonthalia
CFO & Chief IR Officer4.58yrs₹29.28m0.011% 27.9m
Manoj Koul
Company Secretary & Compliance Officer2.58yrs₹7.07mno data
Sudhir Chaturvedi
President of Sales & Whole-Time Director3.33yrs₹107.97m0.037% 89.7m
Siddharth Bohra
Chief Business Officer of Tech4.5yrsno data0.042% 101.5m
Nachiket Deshpande
COO & Whole Time Director0.83yrno datano data
Nitin Mohta
Head of Investor Relationsno datano data0.0014% 3.3m
Peeyush Dubey
Chief Marketing Officerno datano datano data
Ajay Tripathi
Chief Human Resources Officerno datano data0.0012% 2.9m
Anil Vazirani
Chief Business Officer of Insurance Americasno datano data0.034% 83.6m

4.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 540005's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjay Jalona
CEO, MD & Director4.58yrs₹210.34m0.080% 193.1m
Sudhir Chaturvedi
President of Sales & Whole-Time Director3.33yrs₹107.97m0.037% 89.7m
Nachiket Deshpande
COO & Whole Time Director0.83yrno datano data
Sudip Banerjee
Non-Executive Independent Director2.83yrs₹1.10mno data
Anilkumar Naik
Non-Executive Chairman16.25yrs₹9.27m1.21% 2.9b
Mukund Chitale
Independent Director8.42yrs₹1.80m0.000020% 48.5k
Samir Desai
Independent Director13.17yrs₹4.88mno data
Ramamurthi Raman
Non-Executive Director4.42yrsno data0.023% 55.8m
Sekharipuram Subrahmanyan
Non-Executive Vice Chairman2.83yrsno data0.046% 111.5m

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: 540005's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540005 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Larsen & Toubro Infotech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Larsen & Toubro Infotech Limited
  • Ticker: 540005
  • Exchange: BSE
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹242.635b
  • Shares outstanding: 174.08m
  • Website: https://www.lntinfotech.com

Number of Employees


Location

  • Larsen & Toubro Infotech Limited
  • Technology Tower 1
  • Gate No. 5
  • Mumbai
  • Maharashtra
  • 400072
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTINSEI (National Stock Exchange of India)YesEquity SharesININRJul 2016
540005BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2016

Biography

Larsen & Toubro Infotech Limited, a technology consulting and digital solutions company, provides information technology (IT) services and solutions in India, North America, Europe, the Asia Pacific, and internationally. It operates in Banking, Financial Services & Insurance; Manufacturing; Energy & Utilities; High–Tech, Media & Entertainment; and CPG, Retail, Pharma & Others segments. The company offers application development, maintenance and outsourcing, enterprise solution, infrastructure management, testing, digital solution, and platform-based solution services. It serves customers in banking and finance, insurance, manufacturing, energy and utilities, CPG, retail and pharma, hi-tech, media, and entertainment industries. Larsen & Toubro Infotech Limited has strategic partnership with SAP and Temenos. The company was formerly known as L&T Information Technology Limited and changed its name to Larsen & Toubro Infotech Limited in June 2001. Larsen & Toubro Infotech Limited was incorporated in 1996 and is based in Mumbai, India. Larsen & Toubro Infotech Limited is a subsidiary of Larsen & Toubro Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 13:42
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.