NSEI:LTTS

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L&T Technology Services

Executive Summary

L&T Technology Services Limited provides engineering, research, and development (ER&D) services in North America, Europe, India, and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has L&T Technology Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LTTS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

LTTS

3.5%

IN Professional Services

-0.8%

IN Market


1 Year Return

-35.1%

LTTS

-40.2%

IN Professional Services

-23.2%

IN Market

Return vs Industry: LTTS exceeded the Indian Professional Services industry which returned -40.2% over the past year.

Return vs Market: LTTS underperformed the Indian Market which returned -23.3% over the past year.


Shareholder returns

LTTSIndustryMarket
7 Day5.1%3.5%-0.8%
30 Day-2.8%-5.7%-0.7%
90 Day-34.4%-39.7%-22.7%
1 Year-34.2%-35.1%-39.4%-40.2%-21.7%-23.2%
3 Year55.4%50.0%-22.2%-23.1%-12.7%-17.4%
5 Yearn/a-53.4%-53.7%3.9%-6.3%

Price Volatility Vs. Market

How volatile is L&T Technology Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L&T Technology Services undervalued compared to its fair value and its price relative to the market?

14.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LTTS (₹1122.65) is trading above our estimate of fair value (₹655.93)

Significantly Below Fair Value: LTTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LTTS is poor value based on its PE Ratio (14.3x) compared to the Professional Services industry average (9.8x).

PE vs Market: LTTS is poor value based on its PE Ratio (14.3x) compared to the Indian market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: LTTS is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: LTTS is overvalued based on its PB Ratio (4.2x) compared to the IN Professional Services industry average (0.7x).


Next Steps

Future Growth

How is L&T Technology Services forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTTS's forecast earnings growth (4.1% per year) is below the savings rate (7.2%).

Earnings vs Market: LTTS's earnings (4.1% per year) are forecast to grow slower than the Indian market (16.9% per year).

High Growth Earnings: LTTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: LTTS's revenue (5.6% per year) is forecast to grow slower than the Indian market (7.2% per year).

High Growth Revenue: LTTS's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LTTS's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has L&T Technology Services performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTTS has high quality earnings.

Growing Profit Margin: LTTS's current net profit margins (14.6%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: LTTS's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: LTTS's earnings growth over the past year (6.9%) is below its 5-year average (24.9% per year).

Earnings vs Industry: LTTS earnings growth over the past year (6.9%) exceeded the Professional Services industry 2.9%.


Return on Equity

High ROE: LTTS's Return on Equity (29.6%) is considered high.


Next Steps

Financial Health

How is L&T Technology Services's financial position?


Financial Position Analysis

Short Term Liabilities: LTTS's short term assets (₹29.1B) exceed its short term liabilities (₹10.4B).

Long Term Liabilities: LTTS's short term assets (₹29.1B) exceed its long term liabilities (₹4.9B).


Debt to Equity History and Analysis

Debt Level: LTTS's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: LTTS's debt to equity ratio has reduced from 14.7% to 1.1% over the past 5 years.

Debt Coverage: LTTS's debt is well covered by operating cash flow (2105.9%).

Interest Coverage: LTTS's interest payments on its debt are well covered by EBIT (309.2x coverage).


Balance Sheet


Next Steps

Dividend

What is L&T Technology Services's current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LTTS's dividend (1.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: LTTS's dividend (1.87%) is low compared to the top 25% of dividend payers in the Indian market (3.72%).


Stability and Growth of Payments

Stable Dividend: LTTS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LTTS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.7%), LTTS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LTTS's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Keshab Panda (61yo)

4.33yrs

Tenure

₹69,170,000

Compensation

Dr. Keshab Panda has been the Chief Executive Officer and Managing Director at L&T Technology Services Ltd since January 21, 2016. Dr. Panda serves as the Chief Executive of L&T Integrated Engineering Serv ...


CEO Compensation Analysis

Compensation vs Market: Keshab's total compensation ($USD910.15K) is above average for companies of similar size in the Indian market ($USD641.74K).

Compensation vs Earnings: Keshab's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anilkumar Naik
Founder Chairman5.58yrs₹8.80m1.24% 1.5b
Keshab Panda
CEO, MD & Whole Time Director4.33yrs₹69.17m0.070% 81.7m
Parameswaran Ramakrishnan
Chief Financial Officer4.33yrsno data0.000020% 23.5k
Kapil Bhalla
Compliance Officer & Company Secretaryno datano datano data
Amit Pal Chadha
Deputy CEO & Whole Time Director5.25yrs₹47.32m0.045% 53.0m
Bhupendra Bhate
Chief Innovation Officer1yr₹10.66m0.017% 20.4m
Abhishek Sinha
Whole Time Director & COO0.58yrno datano data
Pinku Pappan
Head of Investor Relationsno datano data0.00049% 574.9k
Samir Bagga
Chief Marketing Officerno datano data0.015% 17.4m
Paneesh Rao
Chief Human Resources Officer & CSR Headno datano data0.0064% 7.5m

1.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: LTTS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anilkumar Naik
Founder Chairman5.58yrs₹8.80m1.24% 1.5b
Keshab Panda
CEO, MD & Whole Time Director4.33yrs₹69.17m0.070% 81.7m
Amit Pal Chadha
Deputy CEO & Whole Time Director5.25yrs₹47.32m0.045% 53.0m
Abhishek Sinha
Whole Time Director & COO0.58yrno datano data
Arjun Gupta
Independent Director4.58yrs₹4.36mno data
Sudip Banerjee
Independent Director4.33yrs₹1.85mno data
Apurva Purohit
Independent Director0.42yrno datano data
Narayanan Kumar
Independent Director3.83yrs₹1.80mno data
Samir Desai
Independent Director6.08yrs₹5.24mno data
Sekharipuram Subrahmanyan
Vice Chairman3yrsno data0.077% 89.8m

4.5yrs

Average Tenure

59yo

Average Age

Experienced Board: LTTS's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LTTS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

L&T Technology Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L&T Technology Services Limited
  • Ticker: LTTS
  • Exchange: NSEI
  • Founded: 2012
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: ₹117.330b
  • Shares outstanding: 104.51m
  • Website: https://www.ltts.com

Number of Employees


Location

  • L&T Technology Services Limited
  • West Block-II
  • 5th Floor
  • Vadodara
  • Gujarat
  • 390019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTTSNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2016
540115BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2016

Biography

L&T Technology Services Limited provides engineering, research, and development (ER&D) services in North America, Europe, India, and internationally. Its Transportation segment offers engineering services and solutions to transportation industry that includes OEM and Tier 1 suppliers in automotive, trucks and off-highway vehicles, aerospace, and rail industries. This segment delivers services from concept to detailed design through manufacturing, testing, after-market, and sourcing support. The company’s Process Engineering segment provides engineering services in E/EPCM, engineering reapplication and global rollouts, plant sustenance and management, and regulatory compliance engineering, as well as to chemical, consumer packaged goods, and energy and utility sector clients. Its Industrial Products segment offers engineering services for industrial products to original equipment manufacturer (OEM) customers in building automation, home and office products, energy, process control, and machinery sectors. This segment offers product development counsel, software expertise, electronics, connectivity, mechanical engineering, industrial networking protocols, user interface/user experience, test frameworks, and enterprise control solutions. The company’s Medical Devices segment delivers solutions in diagnostics, patient mobility services, musculoskeletal services, life sciences, surgical services, cardiovascular, home healthcare, and general medical to medical device OEMs. Its Telecom & Hi-Tech segment provides digital engineering services related to telecom, such as the cloud, Internet of Things (IoT), artificial intelligence, data analytics, and others. The company was formerly known as L&T Technology and Engineering Services Company Limited and changed its name to L&T Technology Services Limited in July 2012. L&T Technology Services Limited was incorporated in 2012 and is headquartered in Vadodara, India. The company is a subsidiary of Larsen & Toubro Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/24 13:31
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.