L&T Infotech’s growth metrics help it trump TCS on valuations

The L&T Infotech Ltd (LTI) stock has been one of the top performers among tech companies. From its pre-pandemic high of ₹2,032 in February 2020, the stock has risen over 90% to ₹3,915 now. It has significantly outperformed larger peers Tata Consultancy Services Ltd (TCS) and Infosys Ltd. Shares of these tier-1 tech companies rose by 37% and 66%, respectively, during the same period.

What’s more, its one-year forward price-to-earnings ratio of around 30 times is well ahead of market leader TCS’s valuation of around 28.5 times.

Analysts attribute the sharp rise in the LTI stock to its consistent earnings performance. “LTI reported strong revenue CAGR of 13.5% (>1.5times of industry average) over FY16-FY21 driven by consistent new client additions and wallet share gains.