Sumary of Stock Mantra | This digital solutions firm spikes over 50% in 4 months, can see 25%-30% upside:
- Global technology consulting and digital solutions company Larsen &
- Reasons Behind RallyIT is one of the best-performing sectors, especially after the emergence of the COVID-19 pandemic as companies and governments increased focus on digitalisation.
- As a result, managements of IT companies are confident about growth in coming years amid healthy order books, experts feel.
- The outlook of the IT sector is looking very strong as COVID-19 is acting as a key catalyst for the exponential growth of the Indian IT industry where managements are very confident about the coming years,” said Santosh Meena, Head of Research at Swastika Investmart.
- Experts say valuations are expensive but justified, given its growth potential, and strong return ratios and business model.
- “L&T Infotech is trading at a price-to-earnings of 47 which looks expensive but growth momentum is justifying expensive valuations where L&T infotech has leading revenue growth.
- Management is confident about future growth where they are eyeing a 14-15 percent profit margin.
- The company’s hiring policies are also showing confidence about future growth,” said Santosh Meena.