4450.0000 -20.50 (-0.46%)
NSE May 21, 2025 12:14 PM
Volume: 121.9K
 

4450.00
-0.46%
HDFC Securities
LTTS is among our top picks in tier-2 IT based on (1) Leading pure-play ER&D with diversified verticals and least client concentration, (2) High growth visibility supported by broad-based deal pipeline, deal wins and beneficiary of vendor consolidation (Transportation, Process industry), (3) Investments to drive growth in large accounts (program managers, consultant engagements, co-innovation). Expect USD rev/EPS growth at 17% each. Valuations at 18.2x FY21E supported by strong FCF generation (94% FCF/PAT), strong return metrics (35% RoIC) and growth leadership within tier-2 IT/ER&D. Key risk is Brexit/trade war repercussions. We maintain BUY on LTTS after a strong 4Q performance. Industry-leading growth in FY19 and we expect growth leadership to continue. Our TP at Rs 1,860 is based on 20x FY21E EPS.
L&T Technology Services Ltd. is trading below its 100 day SMA of 4731.7
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