Analysts Are Betting On Larsen & Toubro Infotech Limited (NSE:LTI) With A Big Upgrade This Week

Larsen & Toubro Infotech Limited (NSE:LTI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Larsen & Toubro Infotech will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Larsen & Toubro Infotech's four analysts is for revenues of ₹296b in 2023, which would reflect a substantial 66% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹195b in 2023. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

Check out our latest analysis for Larsen & Toubro Infotech

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Larsen & Toubro Infotech's growth to accelerate, with the forecast 177% annualised growth to the end of 2023 ranking favourably alongside historical growth of 18% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Larsen & Toubro Infotech to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Larsen & Toubro Infotech this year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Larsen & Toubro Infotech.

Analysts are clearly in love with Larsen & Toubro Infotech at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as recent substantial insider selling. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.