Buy Larsen and Toubro Technology Services; target of Rs 6500: Sharekhan

Buy

Sharekhan's research report on Larsen and Toubro Technology Services

Reported revenue stood at $312 million, up 3.1% q-o-q in constant currency (cc) terms, missing our estimates of $315 million. EBIT margin improved by ~80 bps q-o-q to 15.9%, beating our estimates of 15.5%. Deal wins were healthy as the company won one $ 50 million, two $35 million and two $25 million and three $10 million TCV deals. For FY25, management is guiding for near 10% revenue growth in constant currency, including the contribution from Intelliswift.

Outlook

We maintain Buy with an unchanged PT of Rs 6,500. At CMP, stock trades at 38.7/32.3/27.1x its FY25/26/27E EPS.

For all recommendations report, 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.

LT Technology Services - 16012025 - khan