⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
LTTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | LTTS | Market Cap | 35,599 Cr. | Current Price | 3,360 ₹ | High / Low | 4,752 ₹ |
| Stock P/E | 28.6 | Book Value | 545 ₹ | Dividend Yield | 1.63 % | ROCE | 27.9 % |
| ROE | 21.7 % | Face Value | 2.00 ₹ | DMA 50 | 3,622 ₹ | DMA 200 | 4,112 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.44 % | PAT Qtr | 314 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 47.3 | MACD | -109 | Volume | 2,38,997 | Avg Vol 1Wk | 10,08,359 |
| Low price | 3,010 ₹ | High price | 4,752 ₹ | PEG Ratio | 3.09 | Debt to equity | 0.10 |
| 52w Index | 20.1 % | Qtr Profit Var | 4.54 % | EPS | 115 ₹ | Industry PE | 23.1 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹307 Cr → ₹314 Cr), showing steady growth. EPS at ₹115 reflects strong earnings capacity.
- Margins: ROCE at 27.9% and ROE at 21.7% highlight excellent efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.10 indicates very low leverage and strong balance sheet health.
- Cash Flow: Operating performance is robust, supported by consistent profitability.
💹 Valuation Indicators
- P/E: 28.6, above industry average (23.1), suggesting premium valuation.
- P/B: 6.16 (₹3,360 / ₹545), reflecting high market expectations.
- PEG Ratio: 3.09, indicating growth is priced at a premium.
- Intrinsic Value: Current price ₹3,360 is above fair value; better entry closer to ₹3,100–3,250.
🏢 Business Model & Competitive Advantage
- Strong presence in engineering and technology services with global clientele.
- High ROCE and ROE demonstrate superior capital efficiency.
- Low debt enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹3,100–3,250 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to engineering R&D services, though valuation premium warrants caution.
✅ Positive
- Strong ROCE (27.9%) and ROE (21.7%) highlight excellent profitability.
- Debt-to-equity ratio of 0.10 ensures financial stability.
- DII holdings increased by 0.44%, showing domestic institutional confidence.
- Dividend yield of 1.63% adds to shareholder returns.
⚠️ Limitation
- High P/E (28.6) compared to industry average (23.1).
- High P/B ratio reflects premium valuation.
- PEG ratio (3.09) suggests growth is expensive.
- Stock trading below DMA 50 (₹3,622) and DMA 200 (₹4,112), showing weak momentum.
📉 Company Negative News
- FII holdings decreased by 0.45%, showing reduced foreign investor confidence.
- Technical indicators (MACD -109) suggest bearish momentum.
📈 Company Positive News
- Sequential PAT growth from ₹307 Cr to ₹314 Cr.
- DII holdings increased by 0.44%, reflecting strong domestic institutional support.
- Dividend yield of 1.63% supports investor returns.
🏭 Industry
- Industry P/E at 23.1, lower than company’s P/E (28.6), indicating premium valuation.
- Engineering and technology services sector remains resilient with strong demand for R&D outsourcing.
🔎 Conclusion
- LTTS demonstrates strong fundamentals with excellent profitability and low debt.
- Valuation is premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹3,100–3,250 is favorable for long-term investors.
- Overall, a fundamentally strong company with growth prospects, though short-term momentum weakness and valuation premium warrant caution.