L&T; Technology Services (LTTS) is a mid-cap IT Services company, focussed on the Engineering Services segment. It reported revenue of US$ 468mn in FY16, with EBITDA margins of 17%. The company provides outsourcing services to engineering companies across the world, for their research and design activities. Its clientele includes marquee names like BMW, Caterpillar, John Deere and Intel. Transportation (30%) and Industrial (25%) constitute its main verticals while US/EU form 60%/20% of its revenues. While the company operates in a segment with huge growth potential, we find the asking valuations to be highly expensive. Assuming 10%/12% USD revenue growth over FY17/18 and...