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.
Axis Securities Report
In Q1 FY25, L&T Technology Services Ltd. reported revenue of Rs 2,462 crore, down 3% QoQ. The company reported operating profits of Rs 384 crore, posting de-growth of 10.4% on a QoQ basis.
The company's operating margins declined by 130 bps to 15.6%, which was largely led by higher onsite expenses during the quarter. Its net profit for Q1 FY25 stood at Rs 314 crore, registering a de-growth of 8% on a QoQ basis.
Outlook
From a long-term perspective, we believe L&T Tech is well-placed for encouraging growth backed by multiple long-term contracts it has established with the world's leading brands.
Furthermore, better revenue visibility gives us confidence in the company's business growth moving forward. However, rising concerns over the prospects of large economies along with prevailing supply-side constraints pose uncertainties over the company's short-term growth rates.
Valuation and recommendation
We recommend a Hold rating on the stock and assign a 30 times price/earning multiple to its FY26E earnings of Rs 165.2/share to arrive at a target price of Rs 4,900/share, implying an upside of 1% from the CMP.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
