L&T Infotech falls 4% after report of Apple ramping down IT outsourcing work

Sharekhan views this development as negative for the stock in the near term

Larsen & Toubro Infotech shares fell 3.7 percent intraday on July 4 after a media report suggested that Apple ramped down its IT outsourcing work with the company.


The stock was quoting at Rs 1,675.50, down Rs 60.60, or 3.49 percent on the BSE at 1122 hours IST.

"L&T Infotech (LTI) is being questioned by the United States Citizenship and Immigration Services (USCIS) for a documentary discrepancy and procedural lapse related to one of its key customers – Apple. LTI is alleged to have issued letters of invitation to some of its employees to work onsite on the Apple account but Apple is said to have denied any knowledge of such letters being issued," reported The Times of India.

Following this, Apple has ramped down its IT outsourcing work with LTI, the report said quoting sources. Apple's annual contract value with LTI is estimated to be around $25 million.

Sharekhan, which views this development as negative for the stock in the near term, said, "Apple constitutes around 2 percent of the revenues of the company, the event will have some reputation impact on the company in the near term, which we believe would be addressed. On the earnings side, the impact will not be material in the long term."

A special offer this week. take 2 days  free trial in Stock Market Tips and MCX Tips

Comments

Post a Comment

Popular posts from this blog

Technical Classroom: How to use Fibonacci Retracement Levels in stock trading

Image
Fibonacci retracement is a method of technical analysis for determining support and resistance levels A Fibonacci retracement is a popular tool among technical traders and is based on some key numbers. The origins of the Fibonacci series can be traced back to the ancient Indian mathematic scripts, with some claims dating back to 200 BC. However – in the 12th century - Leonardo Pisano Bigollo, an Italian mathematician who was known to his friends as Fibonacci, discovered Fibonacci numbers. It is a popular tool that technical traders use to help identify price levels for transactions, stop losses or target prices. These retracement levels also provide support and resistance levels for a stock. However, it really becomes most effective when confirming signals or conditions identified by additional technical analysis tools. Fibonacci Retracement is a method of technical analysis for determining support and resistance levels. It is named after the use of the Fibonacci sequ...
Read more

Veto Switchgears jumps 5% on realisation of unsecured loan

Image
Veto Switchgears had given unsecured loan to its wholly owned overseas subsidiary Veto Overseas Private F.Z.E. Veto Switchgears and Cables shares rallied 4.8 percent intraday on June 14 after realization of unsecured loan from a subsidiary. "We realized an amount of $1 million against an unsecured loan on June 13," the wires & cables and electrical accessories manufacturer said in its filing. Veto Switchgears had given unsecured loan to its wholly owned overseas subsidiary Veto Overseas Private F.Z.E. The stock climbed 10 percent in the last 15 sessions. At 13:13 hours IST, it was quoting at Rs 66.75, up to Rs 1.10, or 1.68 percent on the BSE. G et a 2 days free trial in Stock Market Tips and MCX Tips  
Read more

Top buy and sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitessh Thakkar for short term

Image
Sudarshan Sukhani of s2analytics.com recommends buying Dabur India with stop-loss at Rs 381 and target of Rs 394, Ajanta Pharma with stop-loss at Rs 944 and target of Rs 973 and Hexaware Tech with stop-loss at Rs 410 and target of Rs 424. The market reversed most of its gains that were seen in the previous session and closed sharply lower on June 21. Escalated geopolitical tensions between the US and Iran and the RBI's concern over slowing economy dented traders' sentiment. Sensex fell 407.14 points or 1.03 percent to 39,194.49, while Nifty shed 107.70 points or 0.91 percent to 11,724.10, forming a bearish candle on the daily as well as weekly charts. For the week, indices declined 0.65 percent and 0.8 percent, respectively. The broader markets outperformed benchmark indices, with the Nifty Midcap and Smallcap indices closing flat with a negative bias. All sectoral indices closed in the red. According to the Pivot charts, the key support level is placed at...
Read more