SEBI Reg. Investment Advisor

Download App
Help Center Subscribe
Money Works 4 Me Logo MoneyWorks4Me
Talk to Advisor
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : L&T Technology Services Ltd

BSE: 540115 NSE: LTTS ISIN: INE010V01017
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does L&T Technology Services Ltd belong to?
L&T Technology Services Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is L&T Technology Services Ltd a good quality company?
L&T Technology Services 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 L&T Technology Services Ltd undervalued or overvalued?
L&T Technology Services Ltd appears Fair, as its key valuation ratios are in line with 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 29.64 38.30
Price to Book 5.91 8.57
Price to Sales 3.45 5.10
EV to EBITDA 16.82 22.09
Q.4 Is L&T Technology Services Ltd a good buy now?
L&T Technology Services 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 L&T Technology Services Ltd?
L&T Technology Services Ltd revenue growth is 14% for FY-2026, which is below its 5-year CAGR of 15.07%, indicating slower growth.

Q.2 Gross Profit margin of L&T Technology Services Ltd?
L&T Technology Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 19% for FY-2026, which is below its 5-year median of 21.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of L&T Technology Services Ltd?
L&T Technology Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.6% for FY-2026, which is below its 5-year median of 19.77% indicating decreasing margins.

Q.4 Net Profit Margin of L&T Technology Services Ltd?
L&T Technology Services Ltd Net Profit Margin is 11.19% for FY-2026, is below its 5-year median of 13.54%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 19 21.5
Operating Profit Margin (%) 17.6 19.77
Net Profit Margin (%) 11.19 13.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of L&T Technology Services Ltd?
L&T Technology Services Ltd Return on Asset is 12.28%, which is below its 5-year historical median of 15.68%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of L&T Technology Services Ltd?
L&T Technology Services Ltd Return on capital employed is 27.7% for FY-2026, which is below its 5-year historical median of 35.44%. 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 L&T Technology Services Ltd?
L&T Technology Services Ltd Return on equity is 19.84% for FY-2026, which is below its 5-year historical median of 25.32%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of L&T Technology Services Ltd?
L&T Technology Services Ltd Cash conversion cycle is 15 days, in line with its 5-year historical median of 15 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) 1.1 1.16
ROE (%) 19.84 25.32
ROCE (%) 27.7 35.44
Cash Conversion Cycle 15 days 15 days

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

Q.9 Debt to Equity ratio of L&T Technology Services Ltd?
L&T Technology Services 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 L&T Technology Services Ltd?
L&T Technology Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of L&T Technology Services Ltd?

Q.1 Promoter shareholding and pledge status of L&T Technology Services Ltd?
Promoters hold 73.57% of the L&T Technology Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does L&T Technology Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of L&T Technology Services Ltd vs industry peers?
L&T Technology Services Ltd revenue CAGR is 15.07%, compared to the industry median CAGR of 19.32%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 14 19.3
Gross Profit Growth (%) 7.7 12.5
Operating Profit Growth (%) 6.9 14.2
Net Profit Growth (%) 3.4 11.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.1 1.22
ROE (%) 19.84 25.84
ROCE (%) 27.7 32.8
Cash Conversion Cycle (days) 15.41 31

Valuation & price assessment

Q.1 Stock return of L&T Technology Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 5.91% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 - 5.9% -3.8% -21.6%
Q.2 Valuation ratios of L&T Technology Services Ltd vs historical?
The current P/E ratio of 29.64 is lower than its historical median of 38.30, 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 29.64 38.30 47.38
Price to Book 5.91 8.57 2.64
Price to Sales 3.45 5.10 4.79
EV to EBITDA 16.82 22.09 16.75

Check more companies

1. Oracle Finl. Service
2. Persistent Systems
3. Coforge
4. Mphasis
5. L&T Technology Serv.

Check trending companies

1. Jubilant Ingrevia Ltd.
2. Gujarat Fluorochemicals Ltd.
3. Reliance Power Ltd.
4. Caplin Point Laboratories Ltd.
5. Indegene Ltd.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: