'Reduce' L&T Tech Shares Maintains Dolat Capital Post Q1 Results — Check Target Price

Despite Q1 sequential revenue dip ($10 million+ swing) from Smart World (hi-tech) seasonality and auto headwinds (Mobility), there is positivity in outlook as L&T Tech anticipates sequential revenue growth from Q2 onwards (Verticals improving and revenues from Middle-East starting to flow in current FY) and operating profit margin improvement in H2 onwards, targeting mid-16% Ebit by Q4 FY27/Q1 FY28.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. .Dolat Capital Report.L&T Technology Services Ltd.’s long-term growth story remains intact, with strong engineering capabilities and a superior margin profile. We believe that growth and profitability are well built into present valuations; however, risks of macro uncertainty persist. Consequently, we retain rating to ‘Reduce’ with a revised target price of Rs 4,600 at 30x PER (FY27E earnings per share of 153)..L&T Tech reported rev of $335 million down 4.2% QoQ in constant currency (our estimate: -0.5%); miss was on account of Smart World seasonality and slower rampup of deals (automotive, etc.). Operating profit margin up by 10 bps QoQ to 13.3% (our estimate: 13.8%) as profitability gains in the sustainability vertical got offset by weakness in Mobility & Hi-Tech. The company has retained its FY26 CC Rev growth guidance of double digits, reaffirming its optimism that FY26 will surpass FY25, as H2 will drive much higher growth than H1. Additionally, OPM might move on an upward trajectory targeting to reach the mid-16% levels between Q4 of FY27 and Q1 of FY28 set. L&T Tech expects continued progress in deal wins for FY26 following three consecutive quarters of $200 million+ large deal TCV bookings (including Q1), but slower translation of same in revenues and adverse revenue mix has led to curtailing of earnings estimates by 4%/4.5% for FY26/FY27E factoring in for a soft start to the Fiscal. .Click on the attachment to read the full report:.Tech Mahindra Shares Downgraded To 'Sell' By Dolat Capital Post Mixed Q1 Results.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.

'Reduce' L&T Tech Shares Maintains Dolat Capital Post Q1 Results — Check Target Price

Dolat Capital believes that growth and profitability are well built into present valuations; however, risks of macro uncertainty persist.

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