LTTS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s a deep dive into L&T Technology Services Ltd (LTTS)

📊 Core Financials

Profitability: ROE of 22.1% and ROCE of 28.3% are excellent, indicating strong capital efficiency.

Quarterly PAT: Marginal growth from ₹310 Cr to ₹316 Cr — stable but not explosive.

Debt Profile: Debt-to-equity ratio of 0.10 — virtually debt-free, a major strength.

Cash Flow: Not disclosed, but consistent profits and low debt suggest healthy cash generation.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 36.0 Slightly above industry average (31.8) — premium valuation

P/B Ratio ~7.46 High — reflects market confidence but limits upside

PEG Ratio 3.43 Overvalued relative to growth — caution warranted

EPS ₹120 Strong earnings base

🧠 Business Model & Competitive Edge

Engineering Services Leader: Offers digital and product engineering across sectors like aerospace, telecom, and medical devices.

Global Reach: Strong international client base and strategic partnerships (e.g., recent $60M telecom deal)

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Innovation Focus: AI-powered solutions like TrackEi™ and sustainability initiatives enhance long-term relevance

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📈 Technical & Sentiment Indicators

RSI (44.8): Slightly bearish — nearing oversold territory.

MACD (-27.4): Negative — momentum is weak.

DMA Levels: Trading below both 50-DMA and 200-DMA — short-term downtrend.

🏁 Entry Zone & Long-Term View

Entry Zone: ₹3,950–₹4,100 — near recent lows and RSI support.

Holding Guidance: Long-term potential remains strong due to high ROE/ROCE, low debt, and global positioning. However, current valuation is rich — better to accumulate on dips.

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