L&T Infotech: New initiatives, deal wins to help maintain growth trajectory

Valuations, however, discount near-term gains on revenue visibility, execution

With a return of 75 per cent over the past six months, L&T Infotech has been a major gainer, outperforming the BSE Teck Index returns of 41 per cent. It also outdid Wipro and Infosys, the best performing tier-1 IT stocks, which made investors richer by 68 per cent over this period.

The outperformance has put the stock’s valuations in the expensive zone. At the current price, it trades at 28 times its financial year 2021-22 (FY22) estimated earnings, which is at 4-5 per cent premium to that of Tata Consultancy Services.

While the best growth metrics and improving margins have been