LTIMindtree, a subsidiary of Larsen & Toubro, has emerged as a contender for the government’s major PAN Card 2.0 project worth around Rs 350 crore, sources told Zee Business.
This will not impact the company’s financials but could play a pivotal role in improving market perception of the IT firm’s ability to handle major government contracts, according to the sources. The Ministry of Finance had recently floated a fresh request for proposals (RFP) for revamping the PAN card system.
However, sources said that LTIMindtree is now the only company left in the race at the technical bid stage.
Earlier, the project was being handled by e-Protean, which failed to qualify for the second round of bidding.
The technical evaluation is expected to conclude within the next 15 to 30 days, according to the.
If LTIMindtree passes the final stage, it will likely be officially awarded the contract shortly thereafter.
What to do with LTIMindtree shares now?
In a conversation with Zee Business Managing Editor Anil Singhvi, Siddharth Sedani of Anand Rathi said the project could serve as a growth driver for the IT firm especially as it looks to expand into AI-powered government contracts.
Sedani maintained a ‘buy’ call on the LTIMindtree stock with a positional target of Rs 5,344.
He stated that the project’s overall impact could be due to expected revenue contributions and operational efficiencies driven by AI adoption.
LTIMindtree Stock Update
Shares of the IT stock ended inch lower at Rs 5,065 on Monday, June 2. According to NSE, the stock gained around 9 per cent in the last one year, while it gained 15 per cent in the last 5 years.
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