MUMBAI : Shares of Larsen & Toubro Infotech Ltd (LTI) on Friday joined the elite Rs1 trillion market capitalization after its shares jumped more than 60% so far this year. Intraday, the stock hit a record high of Rs5,751 on the BSE and gained as much as 2%. At 11am, the scrip was trading at Rs5,731, up 1.6% from its previous close with mcap was at Rs1.01 trillion.

This is the second L&T Group firm to achieve this milestone after Larsen & Toubro Ltd, India’s largest engineering company. L&T's current mcap stands at Rs2.39 trillion.

LTI is one of the fastest growing mid-cap IT companies in India. It is part of the L&T Group and provides services such as ADM (application development and maintenance), enterprise solutions, and infrastructure management services.

The company has a strong presence to the BFSI and manufacturing verticals which accounts for 45% and 17.5% of the company’s revenues and are among the least impacted verticals due to the shutdown on account of covid-19.

The company doesn't have very large exposure to service-oriented verticals such as travel and tourism, which are among  the worst impacted due to the covid–19 outbreak.

“LTI has been growing significantly faster than both mid- and large-cap peers over the past few years on the back of strong deal wins and we expect the outperformance of the company to continue. We expect the company to post revenue/Ebitda/PAT growth of 17.9%/20.5%/20.5 percent between FY20 and FY23 given a strong deal pipeline and increased demand for digital solutions," said Angel Broking in a note to its investors. The brokerage firm has ‘Accumulate’ rating on the stock and has increased its target price to Rs5,950.

In June quarter, its management said it is fairly confident of sustaining the growth momentum and delivering top quartile revenue performance in FY22E, considering the robust deal intake, a healthy deal pipeline and client mining. The company expects FY22 NPM to be in the range of 14-15%.

Despite the absence of large new deal wins in the first quarter, LTI highlighted a strong demand environment, led by a robust deal pipeline. It continues to report small-, medium-, and large-sized deals and would continue to lead growth in the industry.

“We continue to expect LTI to deliver revenue growth on the higher end of our Coverage Universe (FY21–23E USD revenue CAGR of 18%), aided by deal traction, a strong client mining ability, and a supportive demand environment", Motilal Oswal report said.

“As Digital turns mainstream, we expect LTI to benefit from continued investments in digital capabilities, strong client additions, and mining capabilities. This should result in industry-leading growth", Motilal Oswal report added.