📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way

📍 Delhi | 22nd March 2025 | Saturday / 🕕 5:59 PM - 9:01 PM (Entry from 5:30 PM onwards)

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LTI: CMP: 3874 : Cy Sales 31 LongTerm Sales: 18

Lesson 49/223 | Study Time: 5 Min

Course: Top Quality Companies

Founded as L&T Information Technology Ltd in 1996, LTI is a wholly owned subsidiary of Larsen & Toubro The Infra Giant. During 2002 the company's name was changed from L&T Information Technology Limited to Larsen & Toubro Infotech Limited. L&T Infotech dropped the word 'Infotech' from its name to reflect the changed business environment and rebranded itself as 'LTI' with a tag line of 'Let's Solve' in May 2017. In 2022, it was announced that LTI and Mindtree will be merging. The merged entity will be named LTIMindtree. Post merger LTI will become 5th Largest IT company.

LTI is a global technology consulting and digital solutions company with operations in 33 countries. They were able to grow revenue from 2500 Cr and profit of 300 Cr from just a decade back to today revenue and profits of around 16000 Cr and 3000 Cr respectively. Yesterday's sales are today's Profit. 4X growth in just last 10 years with almost Debt free status and high margin combined with good R-O-E backed with strong LT group gets it in the list of wealth creator stocks. We have even recommended during the IPO as a wealth creator issued at 710 and opened with a discount and fell till 20% still many people waited with patience. Many people in this group are already holding since IPO and no need to worry. Buying has been done by many people near 720 and even after that have taken all the falling opportunities as value buying. When you buy good company form growing sector during fall it is the combination of Growth+quality+value buying. Can be kept for the next decade to create wealth.

Covid has no effect on IT industry and instead we saw Companies spending were increased due to Covid. But the war is supposed to affect the IT industry as IT industries major revenue comes from Developed world and this time developed world is affected highly due to war related inflation.

Fy_Q1 results were announced and we saw the strong and health growth of 31% which is as expected. Yes Profits were supposed to be more affected but here we saw even profits were grown by 28% which shows efficient management. Yes sales growth was 31% and even cost grew by 31% which was normal in fact we were expecting more cost. Considering current results we may see this year sales and profit growth of around 25% which can take f_EPS to 164. Similar to other IT companies major sales were contributed by Finance industry and we saw strong growth both in Finance as well as retail.

All those holding since long time can add more during current fall in the whole range of 4130 to 3350 and we may see the target range of 7700 to 6900 this or next year where some 5% profits can be booked. Multiyear rally can be expected and we may see LTI cross 50k Cr sales before the year 2030. Buy near low and book some profits during recovery. Can hold it for long term wealth creation with the view of high growth and consistent earnings.

Strong 75% promoter LT holding while 12% with FII & 8% with MF and Insurance companies.

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Piyush Patel

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