L&T Technology Services Ltd. share price target

L&T; Technology Services (LTTS) reported 6% QoQ CC growth in 2QFY22, above our estimate of 5% QoQ CC, led by a broad-based performance across verticals. Operating leverage led to EBIT margin improvement of 110bp QoQ to 18.4% (above our estimate of 16.8%), despite strong employee additions (+6% QoQ) and lower utilization (-110bps). It reported better-than-expected attrition of 16.5% (+200bps QoQ). The 350bps increase in the FY22E USD revenue growth guidance to 1920% (v/s 1517% in 1Q) came as a welcome surprise. While we were anticipating...

Q4FY25 and US$ 1 Bn by Q2/Q3FY23 implying ~18% growth over FY21-25E. Strong guidance till FY25 reinforces our belief in sustenance of strong Margin guidance of 18% by FY25 is much above our expectations (~16.5%) insights into company's' growth strategies and changing industry landscape....

We recommend a HOLD and assign a 35x P/E multiple to its FY23E earnings of Rs 124/share, which gives a TP of Rs 4,290/share indicating potential upside of 6%.

Raised revenue growth guidance to 15-17% YoY USD from 13-15%, We had already baked in 17.2% YoY USD growth for FY22. LTTS reported strong growth of +4.2% QoQ USD (Ple: 3.7%, Cons:2.7%), despite covid led supply side challenges. Growth was broad-based with four out five segments growing 4%-8% QoQ, led by industrial products (+7.8% QoQ USD). Consistent improvement in EBIT margin for four consecutive...

LTTS reported a 4.3% QoQ CC growth in 1QFY22, above our estimate of 2.8%. Industrial Products/Transportation (+7.8%/+4.3% QoQ) spearheaded this growth. EBIT margin improved by 70bp QoQ, despite a wage hike during...

LTTS reported 3.8% QoQ CC growth in 4QFY21, missing our estimate by 150bp. While segments like Plant Engineering (+9.9% QoQ, large deal ramp up) and Transportation (+6.6% QoQ) did well, Telecom and Hi-Tech and Medical Devices were flat QoQ. EBIT margin improved 140bp QoQ, benefiting from better utilization and offshore mix. The company continues to do well on the deal front, adding six large deals (over USD10m), with two deals with a TCV of over USD25m. The management expressed its confidence on the deal pipeline, which has a...

151bps QoQ at 15.2% in Q2 slightly higher than our estimates of 14.7% by 52bps. Management expects margins to further improve in Q4 led by margin levers (utilization, offshore mix, pyramid, attrition) and higher growth in Telecom & Hi-tech segment. Guidance came in line with our estimates of 6.5% (Ple: 6% decline) revenue decline for FY21E. We had released a detailed report in December on ER&D; sector, where we have mention how ER&D; spends will pick up in coming quarters. link Management mentioned that ER&D; spends remains strong across all...