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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 10 year financial track record.
Q.3 Is L&T Technology Services Ltd undervalued or overvalued?
L&T Technology Services Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
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

Q.1 Revenue growth of L&T Technology Services Ltd?
L&T Technology Services Ltd revenue growth is 10.6% for FY-2025 , which is below its 5 year CAGR of 13.7% , 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 19.2% for FY-2025 , 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 17.71% for FY-2025 , 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 11.84% for FY-2025 , is below with its 5 year median of 13.54%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 19.2 21.5
Operating Profit Margin 17.71 19.77
Net Profit Margin 11.84 13.54
Q.5 Return on Asset of L&T Technology Services Ltd?
L&T Technology Services Ltd Return on Asset is 13.95%, which is below its 5 year historical median of 15.68%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of L&T Technology Services Ltd?
L&T Technology Services Ltd Return on equity is 22.52% for FY-2025 , which is below its historical median of 25.32%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of L&T Technology Services Ltd?
L&T Technology Services Ltd Return on capital employed is 31.51% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of L&T Technology Services Ltd?
L&T Technology Services Ltd Cash conversion cycle is 4 days, below its historical median of 30 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.18 1.18
ROE 22.52 25.32
ROCE 31.51 35.44
Cash Conversion Cycle 4 days 30 days
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 with the industry average of 0.04 , 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, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of L&T Technology Services Ltd?
Promoters hold 73.58% of the L&T Technology Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of L&T Technology Services Ltd vs industry peers?
L&T Technology Services Ltd revenue CAGR is 13.68% , compared to the industry median CAGR of 18.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 10,670.1 8,415.1
Gross Profit 2,048.6 2,014.1
Operating Profit 1,890 1,882.5
Net Profit 1,264 1,238
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.18 1.26
ROE 22.52 26.06
ROCE 31.51 33.58
Cash Conversion Cycle (days) 4.27 44

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 4.55% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 4.6% -1.6% -18.7%
Q.3 Valuation ratios of L&T Technology Services Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 28.3 25.93 22.96
Price to Book 5.48 5.79 2.61
Price to Sales 3.03 3.27 4.40
EV to EBITDA 15.8 15.15 17.20

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