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

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.

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