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26 Aug, 2025 12:21

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AUM Capital in its research report on L&T Technology Services IPOCompany BackgroundL&T Technology Services Ltd is a wholly-owned subsidiary of Larsen & Toubro Ltd with a focus on the Engineering Services space, partnering with a large number of Fortune 500 companies globally. The company offers design and developmentsolutions throughout the entire product development chain across various industries such as Industrial Products, Medical Devices, Automotive, Aerospace, Highway & Polymer, Commercial Vehicles, Telecom & Hi-Tech, and the Process Industry. It also offers solutions in the areas of Mechanical Engineering Services, Embedded Systems & Engineering Application Software, Product Lifecycle Management, Engineering Analytics, Power Electronics, and M2M and the Internet-of-Things (IoT). With a multi-disciplinary and multi-domain presence, it helps to its clients to achieve a sustainable competitive advantage through valuecreating products, processes and services. As on June 30, 2016, it had a total of 9419 employees, 12 global delivery centers in India and Overseas, 26 Sales Offices in India, North America, Europe, the Middle East and Asia and 31 Labs in India.ValuationsThe company is one among the few in the world providing technology solutions. Besides India, it provides services globally and the percentage of its revenue from continuing operations from North America, Europe and the rest of the world, amounted to 63.5%, 20.2% and 9.4% as on June 30, 2016 respectively. We believe, its strong parentage gives it many inherent advantages and also, increase in demand from overseas clients, especially, from US and Europe may improve its financials going forward. While there are no strictly comparable peers listed for valuation comparison, at higher price band of Rs.860, L&T Technology is valued at FY16 P/E of 21x. This is at a premium to other listed IT companies. A relatively better earnings outlook, strong parentage & the niche market it serves makes the stock investment worthy for long term perspective.For all IPO stories, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.