Hold Larsen and Toubro Technology; target of Rs 1872: Arihant Capital

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Arihant Capital 's research report on Larsen and Toubro Technology

L&T Technology Services’ (LTTS) Q2FY21 earnings were mixed. Consolidated revenue stood at Rs 13,138 Mn, below our estimate of Rs 13,993 Mn, registering a de-growth of 6.3% YoY and muted growth of 1.5% QoQ. Reported EBITDA was down by 17.8% YoY but grew by 13.1% QoQ to Rs 2,328 Mn, above our estimate of Rs 1745 Mn, while EBITDA margin contracted by 248bps YoY but expanded by182bps QoQ to 17.7% in Q2FY21. EBIT margins was up 161bps QoQ TO 13.7% in Q2FY21.. EBIT margins during the quarter improved primarily due to increase in utilization PAT for Q2FY21 declined by 19.6% YoY but rose by 41.2% QoQ to Rs 1,655 Mn, above our estimate of Rs 1407 Mn.

Outlook

Thus We value LTTS at P/E of 26x to its FY22E EPS , which yields target price of Rs 1872 per share and assign Hold rating on the stock.

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