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LTTS

L&T Technology ServicesNSEI:LTTS Stock Report

Market Cap

₹510.0b

7D

6.5%

1Y

189.0%

Updated

27 Sep, 2021

Data

Company Financials +
LTTS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends3/6

LTTS Overview

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

L&T Technology Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for L&T Technology Services
Historical stock prices
Current Share Price₹4,742.75
52 Week High₹1,565.00
52 Week Low₹5,000.00
Beta0.48
1 Month Change19.34%
3 Month Change63.95%
1 Year Change188.96%
3 Year Change175.23%
5 Year Change460.18%
Change since IPO445.77%

Recent News & Updates

Shareholder Returns

LTTSIN Professional ServicesIN Market
7D6.5%2.0%0.8%
1Y189.0%145.7%67.5%

Return vs Industry: LTTS exceeded the Indian Professional Services industry which returned 145.7% over the past year.

Return vs Market: LTTS exceeded the Indian Market which returned 67.5% over the past year.

Price Volatility

Is LTTS's price volatile compared to industry and market?
LTTS volatility
LTTS Beta0.48
Industry Beta0.65
Market Beta1

Stable Share Price: LTTS is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LTTS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201216,972Amit Pal Chadhahttps://www.ltts.com

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 original equipment manufacturers (OEM) and Tier 1 suppliers in automotive, trucks and off-highway vehicles, aerospace, and rail industries. The company’s Industrial Products segment helps OEM customers in building automation, home and office products, energy, process control, and machinery sectors.

L&T Technology Services Fundamentals Summary

How do L&T Technology Services's earnings and revenue compare to its market cap?
LTTS fundamental statistics
Market Cap₹509.96b
Earnings (TTM)₹7.62b
Revenue (TTM)₹57.23b

65.4x

P/E Ratio

8.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LTTS income statement (TTM)
Revenue₹57.23b
Cost of Revenue₹34.57b
Gross Profit₹22.67b
Expenses₹15.04b
Earnings₹7.62b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)72.48
Gross Margin39.60%
Net Profit Margin13.32%
Debt/Equity Ratio0%

How did LTTS perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

31%

Payout Ratio

Valuation

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

65.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LTTS (₹4742.75) is trading above our estimate of fair value (₹982.77)

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 (65.4x) compared to the Indian Professional Services industry average (31.3x).

PE vs Market: LTTS is poor value based on its PE Ratio (65.4x) compared to the Indian market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: LTTS is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: LTTS is overvalued based on its PB Ratio (13.5x) compared to the IN Professional Services industry average (1.3x).


Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTTS's forecast earnings growth (14.3% per year) is above the savings rate (6.8%).

Earnings vs Market: LTTS's earnings (14.3% per year) are forecast to grow slower than the Indian market (18.3% per year).

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

Revenue vs Market: LTTS's revenue (14.2% per year) is forecast to grow faster than the Indian market (12.6% per year).

High Growth Revenue: LTTS's revenue (14.2% 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 (23.2%)


Past Performance

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

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTTS has high quality earnings.

Growing Profit Margin: LTTS's current net profit margins (13.3%) are higher than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: LTTS's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: LTTS's earnings growth over the past year (4.2%) is below its 5-year average (15.5% per year).

Earnings vs Industry: LTTS earnings growth over the past year (4.2%) underperformed the Professional Services industry 48.2%.


Return on Equity

High ROE: LTTS's Return on Equity (20.6%) is considered high.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: LTTS's short term assets (₹25.6B) exceed its short term liabilities (₹12.0B).

Long Term Liabilities: LTTS's short term assets (₹25.6B) exceed its long term liabilities (₹4.7B).


Debt to Equity History and Analysis

Debt Level: LTTS is debt free.

Reducing Debt: LTTS has no debt compared to 5 years ago when its debt to equity ratio was 17.7%.

Debt Coverage: LTTS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LTTS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LTTS's dividend (0.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: LTTS's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (1.45%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), 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 (28.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Amit Pal Chadha (49 yo)

0.42

Tenure

₹94,890,000

Compensation

Mr. Amit Pal Singh Chadha serves as CEO & Managing Director at L&T Technology Services Limited since April 1, 2021. Mr. Chadha served as Deputy Chief Executive Officer at L&T Technology Services Limited si...


CEO Compensation Analysis

Compensation vs Market: Amit Pal's total compensation ($USD1.29M) is above average for companies of similar size in the Indian market ($USD786.66K).

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


Leadership Team

Experienced Management: LTTS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: LTTS's board of directors are considered experienced (5.2 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 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: ₹509.959b
  • Shares outstanding: 105.18m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 12:04
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.