L&T Technology Gets 'Buy' Rating As IDBI Capital Initiates Coverage, Sees 15% Upside

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

We initiate the coverage with Buy rating at a target price of Rs 5,251 (32x PE FY27E earnings per share).

L&T Technology Services Ltd., a prominent engineering research and development player with a global footprint across key verticals— Mobility, Sustainability, and Technology; and flexes a robust portfolio of niche subsegments and service lines.

Distinguished among its peers, L&T Tech has cemented its position in the engineering domain through the development of cutting-edge capabilities (1,448 patents), leveraging both organic/inorganic growth through strategic acquisitions (such as Intelli-swift and SWC).

The management is confident in its expansive capabilities & aims to achieve a $2 billion revenue run rate in the medium term, with a long-term target of $1bn each vertical.

This ambition is underpinned by a rich client base (378 active clients) with a consistent track record of securing large deals (7-8 in last six quarters). Given the rising demand in the ERD space, L&T Tech is well-poised with its technological prowess and capacity to capture the growth, likely to lead the pack. However, macro-economic challenges may pose short-term headwinds, potentially dampening growth in the near term.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.