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. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LTTS's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

LTTS

3.4%

IN Professional Services

-0.3%

IN Market


1 Year Return

53.3%

LTTS

22.0%

IN Professional Services

15.9%

IN Market

Return vs Industry: LTTS exceeded the Indian Professional Services industry which returned 22.6% over the past year.

Return vs Market: LTTS exceeded the Indian Market which returned 15.9% over the past year.


Shareholder returns

LTTSIndustryMarket
7 Day2.5%3.4%-0.3%
30 Day28.3%19.3%4.9%
90 Day45.7%35.9%24.5%
1 Year55.5%53.3%24.1%22.0%18.0%15.9%
3 Year163.0%152.6%33.4%31.5%9.7%4.4%
5 Yearn/a-14.4%-14.4%82.1%68.4%

Long-Term 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?

38.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LTTS (₹2518.25) is trading above our estimate of fair value (₹710.83)

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 (38x) compared to the IN Professional Services industry average (26.4x).

PE vs Market: LTTS is poor value based on its PE Ratio (38x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: LTTS is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: LTTS is overvalued based on its PB Ratio (8.5x) compared to the IN Professional Services industry average (1x).


Next Steps

Future Growth

How is L&T Technology Services forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTTS's forecast earnings growth (20.1% per year) is above the savings rate (7%).

Earnings vs Market: LTTS's earnings (20.1% per year) are forecast to grow slower than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LTTS's revenue (13.2% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: LTTS's revenue (13.2% 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 (24.4%)


Next Steps

Past Performance

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

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTTS has high quality earnings.

Growing Profit Margin: LTTS's current net profit margins (12.6%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: LTTS's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: LTTS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LTTS had negative earnings growth (-12.1%) over the past year, making it difficult to compare to the Professional Services industry average (-21.8%).


Return on Equity

High ROE: LTTS's Return on Equity (22.4%) 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 (₹30.4B) exceed its short term liabilities (₹9.3B).

Long Term Liabilities: LTTS's short term assets (₹30.4B) exceed its long term liabilities (₹4.9B).


Debt to Equity History and Analysis

Debt Level: LTTS's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: LTTS's debt to equity ratio has reduced from 16.6% to 0.9% over the past 5 years.

Debt Coverage: LTTS's debt is well covered by operating cash flow (3549.2%).

Interest Coverage: LTTS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LTTS's dividend (0.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: LTTS's dividend (0.83%) is low compared to the top 25% of dividend payers in the Indian market (1.81%).


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 (31.7%), 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 (33.3% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Keshab Panda (62 yo)

5yrs

Tenure

₹146,790,000

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 ($USD2.01M) is above average for companies of similar size in the Indian market ($USD729.45K).

Compensation vs Earnings: Keshab's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anilkumar Naik
Founder Chairman6.25yrs₹7.03m0.48%
₹ 1.3b
Keshab Panda
CEO, MD & Whole Time Director5yrs₹146.79m0.11%
₹ 289.6m
Abhishek Sinha
Whole Time Director & COO1.25yrs₹12.93mno data
Kapil Bhalla
Compliance Officer & Company Secretaryno data₹5.72mno data
Amit Pal Chadha
Deputy CEO & Whole Time Director5.92yrs₹100.85m0.10%
₹ 277.0m
Bhupendra Bhate
Chief Innovation Officer1.67yrs₹8.10mno data
Rajeev Gupta
Chief Financial Officer0.50yrno datano data
Pinku Pappan
Head of Investor Relationsno datano data0.000010%
₹ 26.4k
Samir Bagga
Chief Marketing Officerno datano data0.019%
₹ 49.1m
Paneesh Rao
Chief Human Resources Officer & CSR Headno datano data0.0064%
₹ 16.9m

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: LTTS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anilkumar Naik
Founder Chairman6.25yrs₹7.03m0.48%
₹ 1.3b
Keshab Panda
CEO, MD & Whole Time Director5yrs₹146.79m0.11%
₹ 289.6m
Abhishek Sinha
Whole Time Director & COO1.25yrs₹12.93mno data
Amit Pal Chadha
Deputy CEO & Whole Time Director5.92yrs₹100.85m0.10%
₹ 277.0m
Sudip Banerjee
Independent Director5yrs₹1.98mno data
Apurva Purohit
Independent Director1.08yrs₹530.00k0.00021%
₹ 555.3k
Narayanan Kumar
Independent Director4.5yrs₹1.80mno data
Samir Desai
Independent Director6.75yrs₹5.70mno data
Sekharipuram Subrahmanyan
Vice Chairman3.67yrsno data0.11%
₹ 302.2m
R. Chandrasekaran
Independent Director0.25yrno datano data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: LTTS's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LTTS insiders have sold more shares than they have bought 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: ₹264.414b
  • Shares outstanding: 105.00m
  • Website: https://www.ltts.com

Number of Employees


Location

  • L&T Technology Services Limited
  • West Block-II
  • L&T Knowledge City (IT/ITES) SEZ
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:20
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.