LTTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | LTTS | Market Cap | 38,440 Cr. | Current Price | 3,626 ₹ | High / Low | 4,747 ₹ |
| Stock P/E | 31.8 | Book Value | 559 ₹ | Dividend Yield | 1.60 % | ROCE | 26.8 % |
| ROE | 20.7 % | Face Value | 2.00 ₹ | DMA 50 | 3,494 ₹ | DMA 200 | 3,943 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.07 % | PAT Qtr | 317 Cr. | PAT Prev Qtr | 304 Cr. |
| RSI | 59.2 | MACD | 59.1 | Volume | 1,34,212 | Avg Vol 1Wk | 1,36,118 |
| Low price | 3,010 ₹ | High price | 4,747 ₹ | PEG Ratio | 12.2 | Debt to equity | 0.09 |
| 52w Index | 35.5 % | Qtr Profit Var | 11.7 % | EPS | 114 ₹ | Industry PE | 26.0 |
Entry Zone: 3,500 ₹ – 3,600 ₹ (near 50 DMA support)
Exit Guidance: 4,600 ₹ – 4,700 ₹ (resistance near 52-week high)
Holding View: Strong candidate for long-term holding with valuation caution
Positive
- Excellent ROCE (26.8%) and ROE (20.7%) highlight superior capital efficiency
- Low debt-to-equity ratio (0.09) ensures strong balance sheet health
- Dividend yield of 1.60% adds shareholder value
- EPS of 114 ₹ provides robust earnings base
- Quarterly PAT growth (304 Cr → 317 Cr) shows consistent operational strength
- Stock trading above 50 DMA (3,494 ₹) supports near-term momentum
Limitation
- High P/E of 31.8 compared to industry PE of 26.0 — valuation premium
- PEG ratio of 12.2 indicates expensive growth prospects
- FII holdings decreased (-0.36%), showing reduced foreign investor confidence
- Price below 200 DMA (3,943 ₹) signals medium-term resistance
Company Negative News
- Valuation premium relative to peers may limit upside potential
- Reduced foreign institutional participation
Company Positive News
- Strong quarterly profit growth boosts investor sentiment
- Dividend yield provides consistent returns
- Technical indicators (RSI 59.2, MACD 59.1) show bullish momentum
Industry
- Industry PE at 26.0, lower than LTTS’s 31.8 — sector valuations more moderate
- Sector momentum strong with 52-week index return of 35.5%
Conclusion
L&T Technology Services demonstrates strong fundamentals with excellent capital efficiency, low leverage, and consistent profit growth. However, stretched valuations and reduced foreign participation limit near-term upside. Entry near 3,500–3,600 ₹ offers a favorable setup, with exits around 4,600–4,700 ₹ advisable. Long-term holding remains attractive if earnings growth sustains, though valuation monitoring and institutional flows should be tracked closely.
This block is optimized for direct integration into your modular HTML workflow reports. Would you like me to also prepare a technical momentum rating module (RSI, MACD, DMA classification) so you can overlay both perspectives seamlessly?