L&T Tech - Volatility To Persist: HDFC Securities

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..HDFC Securities Institutional Equities.L&T Technology Services Ltd. has strong credentials as a leading pure-play engineering services provider with low churn. Still, it faces challenges of scale, longer deal conversion cycle and business cyclicality. The upside seems capped as current growth numbers for L&T Tech already factor in the incremental revenue addition of two times its historical organic average. We recently visited the company’s Mysore facility (~3,000 employees) and several customer offshore development centres in medical devices, industrial products and transportation. The company has a sticky (lower vendor churn) revenue pool from marquee customer base and demand for digital engineering and offshore services is driving growth across industry verticals. We have also analysed the annual report and some key highlights include-strong partnership in the chip ecosystem supporting growth across verticals (Transportation, Medical),change in business mix with SWC acquisition and higher increase in median remuneration that impacted margins, andparent (related party) contributing to ~20% of organic growth and steady operating cash flow conversion despite high DSO. .Maintain Reduce on L&T Tech with target price of Rs 4,270, based on 27 times FY26E earnings per share..Click on the attachment to read the full report:.FMCG Sector Check - With Multiple Tailwinds, Re-Rating On The Cards: Anand Rathi.DISCLAIMERThis 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.

L&T Tech - Volatility To Persist: HDFC Securities

Maintain Reduce on L&T Tech with target price of Rs 4,270, based on 27 times FY26E earnings per share.

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L&T Tech - Volatility To Persist: HDFC Securities

Maintain Reduce on L&T Tech with target price of Rs 4,270, based on 27 times FY26E earnings per share.

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