The Discounted Cash Flow (DCF) valuation of Larsen & Toubro Infotech Ltd (LTI.NS) is 1,708.34 INR. With the latest stock price at 4,268.05 INR, the upside of Larsen & Toubro Infotech Ltd based on DCF is -60%.

Is LTI.NS a buy or a sell?

Based on the latest price of 4,268.05 INR and our DCF valuation, Larsen & Toubro Infotech Ltd (LTI.NS) is a sell. Selling LTI.NS stocks now will result in a potential gain of 60%.

	Range	Selected
WACC / Discount Rate	12.4% - 15.7%	14.0%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	1,455 - 2,142.62	1,708.34
Upside	-65.9% - -49.8%	-60.0%

4,268.05 INR

Stock Price

1,708.34 INR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

LTI.NS DCF Valuation: Revenue & Expenses Forecast

(INR in millions)		Projections

	03-2023	03-2024	03-2025	03-2026	03-2027	03-2028

Revenue	331,830	198,450	202,828	206,884	211,022	215,312
% Growth	27%	-40%	2%	2%	2%	2%

Cost of goods sold	(20,188)	(11,470)	(11,137)	(10,791)	(10,457)	(10,136)
% of Revenue	6%	6%	5%	5%	5%	5%

Selling, G&A expenses	(234,769)	(140,403)	(143,500)	(146,370)	(149,298)	(152,332)
% of Revenue	71%	71%	71%	71%	71%	71%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(18,958)	(11,338)	(11,588)	(11,820)	(12,056)	(12,301)
% of Revenue	6%	6%	6%	6%	6%	6%

Tax expense	(13,812)	(8,850)	(9,192)	(9,519)	(9,848)	(10,182)
Tax rate	24%	25%	25%	25%	25%	25%

Net profit	44,103	26,389	27,411	28,384	29,364	30,360
% Margin	13%	13%	14%	14%	14%	14%