L&T Technology Services Ltd. share price target

L&T; Technology Services Ltd incorporated in 2012 is a Mumbai India based third-party ER&D; (Engineering, Research and Development) service provider . L&T; Tech provide services to manufacturing, technology and process engineering companies to help them develop and build products, processes and infrastructure required to deliver products and services to their end customers. The company operates in five industry segments; transportation, industrial products, telecom and hitech, process industry and medical devices. It offers design and development solutions throughout the product development chain and provide solutions in the areas of mechanical and manufacturing engineering, embedded systems, software engineering and process engineering. 80.% of the company's revenues is derived from customers in North America and Europe and the majority of its work is executed by employees based out of delivery centers in India using an offshore delivery model. This gives L&T; Tech a competitive advantage in terms of talent pool availability and lower...

L&T Technology Services Limited (LTTS) is subsidiary of Engineering giant, L&T and was incorporated in Jun-2012. Post transfer of Product Engineering Services (PES) and Integrated Engineering Services (IES) division and 2 acquisitions in 2014-15, LTTS emerged as leading pure play Engineering Research & Development (ER&D) player.

Valuation: LTTS trades at 21.0x FY2016 EPS at upper-end of issue price band. On considering (1) strong growth potential of LTTS, which is ahead of some of the industry peers, coupled with (2) 38%+ RoE levels in FY2016, (3) FY2015-16 average cash flow from operations of `446cr, (4) strong ~64% dividend payout (translating to ~4% dividend yield), we are of view that LTTS stock has the potential to trade at premium to the peers. However, if we consider the average of the 3 peers, then LTTS stock has been priced at 19% discount. Given that the LTTS IPO has been priced at discount, Angel advises a SUBSCRIBE rating.

L&T Technology Services Ltd (LTTSL) is a leading global pure-play (engineering research and development) ER&D Services Company. It provides ER&D services, which is defined as the set of services provided to manufacturing, technology and process engineering companies, to help them develop and build products, processes and infrastructure required to deliver products and services to the end customers.

By region, LTTSL derive 80.2% of its revenues from customers in North America and Europe, which are the two largest regions of corporate ER&D spend and represented over 73% of the US$1,007 billion corporate ER&D services spend in 2015. The top 100 spenders in the G500 ER&D spend contribute 66.3% of the G500 ER&D spend and its key global customers include 43 of the top 100 global ER&D spenders, which offers significant growth opportunities for existing customer accounts. L and T Technology Services Ltd Issue Open: Sep 12 ? Sep 15 2016 with the Price Band: Rs. 850 - 860

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...

Incorporated in 2012, L&T; Technology Services Ltd is India based third-party ER&D; (Engineering, Research and Development) service provider. L&T; Tech provide services to manufacturing, technology and process engineering companies to help them develop and build products, processes and infrastructure required to deliver products and services to their end customers. It derives 80.2% of its revenues from customers in North America and Europe. It has 12 global delivery centers in India and overseas, 27 sales oces in India, North America, Europe, the...

Incorporated in 2012, L&T; Technology Services Ltd is India based third-party ER&D; (Engineering, Research and Development) service provider. L&T; Tech provide services to manufacturing, technology and process engineering companies to help them develop and build products, processes and infrastructure required to deliver products and services to their end customers. It derives 80.2% of its revenues from customers in North America and Europe. It has 12 global delivery centers in India and overseas, 27 sales oces in India, North America, Europe, the...

L&T; Technologies is a leading global Engineering Research and Development (ER&D;) company. The company was formed as a result of restructuring of its parent L&T; and LTIL (Larsen & Tuobro InfoTech Ltd.). Prior to January 2014, L&T; Technologies business was conducted as Integrated Engineering Services (IES) division of L&T; and Product Engineering Services (PES) of LTIL. As part of a business restructuring exercise, the PES business from LTIL and the IES business from L&T; was transferred to L&T; Technologies with effect from January 1, 2014 and April 1, 2014, respectively. The newly formed company provides ER&D; services, which is defined as the set of services provided to manufacturing, technology and process engineering companies, to help them develop and build products, processes and infrastructure required...