Check Before You Invest : LTM Ltd

Q: Which industry/sub-sector does LTM Ltd belong to?

LTM Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is LTM Ltd a good quality company?

LTM Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is LTM Ltd undervalued or overvalued?

LTM Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 25.72, Historic Median: 36.34. Price to Book, Current: 5.35, Historic Median: 8.08. Price to Sales, Current: 3.05, Historic Median: 4.54. EV to EBITDA, Current: 14.59, Historic Median: 22.08

Q: Is LTM Ltd a good buy now?

LTM Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of LTM Ltd?

LTM Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 28.43%, indicating slower growth.

Q: Gross Profit margin of LTM Ltd?

LTM Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.8% for FY-2026, which is in line with its 5-year median of 19.6%, indicating stable margins.

Q: Operating Profit Margin of LTM Ltd?

LTM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.02% for FY-2025, which is below its 5-year median of 18.37% indicating decreasing margins.

Q: Net Profit Margin of LTM Ltd?

LTM Ltd Net Profit Margin is 11.78% for FY-2026, is below its 5-year median of 12.91%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 19.8, Historic Median: 19.6. Operating Profit Margin (%), Current: 17.02, Historic Median: 18.37. Net Profit Margin (%), Current: 11.78, Historic Median: 12.91

Q: Return on Asset of LTM Ltd?

LTM Ltd Return on Asset is 14.95%, which is below its 5-year historical median of 18.17%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of LTM Ltd?

LTM Ltd Return on capital employed is 30.25% for FY-2026, which is below its 5-year historical median of 34.1%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : LTM Ltd

BSE: 540005 NSE: LTM ISIN: INE214T01019

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does LTM Ltd belong to?

LTM Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is LTM Ltd a good quality company?

LTM Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is LTM Ltd undervalued or overvalued?

LTM Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	25.72	36.34
Price to Book	5.35	8.08
Price to Sales	3.05	4.54
EV to EBITDA	14.59	22.08

Q.4 Is LTM Ltd a good buy now?

LTM Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of LTM Ltd?

LTM Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 28.43%, indicating slower growth.

Q.2 Gross Profit margin of LTM Ltd?

LTM Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.8% for FY-2026, which is in line with its 5-year median of 19.6%, indicating stable margins.

Q.3 Operating Profit Margin of LTM Ltd?

LTM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.02% for FY-2025, which is below its 5-year median of 18.37% indicating decreasing margins.

Q.4 Net Profit Margin of LTM Ltd?

LTM Ltd Net Profit Margin is 11.78% for FY-2026, is below its 5-year median of 12.91%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	19.8	19.6
Operating Profit Margin (%)	17.02	18.37
Net Profit Margin (%)	11.78	12.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of LTM Ltd?

LTM Ltd Return on Asset is 14.95%, which is below its 5-year historical median of 18.17%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of LTM Ltd?

LTM Ltd Return on capital employed is 30.25% for FY-2026, which is below its 5-year historical median of 34.1%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of LTM Ltd?

LTM Ltd Return on equity is 21.51% for FY-2026, which is below its 5-year historical median of 25.63%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of LTM Ltd?

LTM Ltd Cash conversion cycle is 34 days, in line with its 5-year historical median of 34 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.27	1.41
ROE (%)	21.51	25.63
ROCE (%)	30.25	34.1
Cash Conversion Cycle	34 days	34 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of LTM Ltd?

LTM Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of LTM Ltd?

LTM Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of LTM Ltd?

Q.1 Promoter shareholding and pledge status of LTM Ltd?

Promoters hold 68.52% of the LTM Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does LTM Ltd performance compare with that of its Peers?

Q.1 Revenue growth of LTM Ltd vs industry peers?

LTM Ltd revenue CAGR is 28.43%, compared to the industry median CAGR of 10.42%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	7	10.4
Gross Profit Growth (%)	16.2	9.1
Operating Profit Growth (%)	16.1	7.8
Net Profit Growth (%)	8.3	8.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.27	1.19
ROE (%)	21.51	24.52
ROCE (%)	30.25	31.91
Cash Conversion Cycle (days)	34.26	43

Valuation & price assessment

Q.1 Stock return of LTM Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 2.92% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	2.9%	-2%	-5.8%

Q.2 Valuation ratios of LTM Ltd vs historical?

The current P/E ratio of 25.72 is lower than its historical median of 36.34, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.72	36.34	47.38
Price to Book	5.35	8.08	2.64
Price to Sales	3.05	4.54	4.79
EV to EBITDA	14.59	22.08	16.75

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Check Before You Invest : LTM Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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