L&T Technology Share Price Slips After JPMorgan Downgrade On Bleak Growth Outlook

The share price of L&T Technology Services Ltd. declined as JPMorgan downgraded the stock and slashed the target price, citing bleak growth outlook. The brokerage expects the company's topline along with overall growth to decline primarily due to a slowdown in the mobility segment.

JPMorgan downgraded L&T Technology Services to 'neutral' from 'overweight'. The brokerage cut the target price to Rs 4,100 from Rs 5,000 apiece. The current target price implies a 5.1% downside from Thursday's closing price.

JPMorgan has also cut the earnings estimate by 9–11%, led by both revenue and margin cuts. It has also reduced the target PE multiple from 32 times to 28 times.

The mobility business is expected to face prolonged challenges due to delays in deal ramp-ups from automotive OEMs. This is likely to drag overall growth in financial year 2026 below 10%, with organic growth estimated at just 3%, JPMorgan said.

The mobility business will likely see extended headwinds from delays in ramp-ups of deals from auto original equipment, similar to what KPIT Technologies highlighted recently, the brokerage said.