Buy Larsen and Toubro Technology; target of Rs 2030: Sharekhan

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Sharekhan's research report on Larsen and Toubro Technology

Q2 numbers beat estimates on all fronts, with solid deal TCVs, robust deal pipeline and strong FCF generation; EBIT margin improved 161 bps q-o-q to 13.7% in Q2FY2021, exceeding expectations. The management guided for a decline of 7-8% in US Dollar revenues as against a 9-10% drop expected earlier for FY2021, translating a 3.4-4.8% q-o-q growth for the remaining quarters of FY2021; EBIT margin likely to improve, led by higher utilisation, better revenue mix and operational efficiencies. We expect LTTS’ revenue and earnings to clock a CAGR of 13% and 20% over FY2021-23E, led by strong deal wins, strong account mining activities and higher demand for digital and leading-edge technologies.

Outlook

We maintain a Buy on L&T Technology Services (LTTS) with a revised PT of Rs. 2,030, given its strong position in fast growing ERD space.

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.

Read More