Buy Larsen and Toubro Technology; target of Rs 6500: Sharekhan

Sharekhan's research report on Larsen and Toubro Technology

LTTS has laid down its aspiration to be among the Top 5 Global ER&D service companies and to reach $2 billion in revenue with EBIT margin of 17-18% in the medium term. Mobility, Sustainability and Tech are expected to achieve $1 billion each in revenues with EBIDTA margin in the segments improving to 20-22%, 28-30%, and 16-18% respectively over the medium term. The company sees headroom for margin improvement and has identified several levers to strengthen its operational playbook by increased customer mining, higher quality of revenue, increase fresher mix and higher offshoring.

Outlook

We maintain Buy on LTTS with revised PT of Rs 6,500 (valuing at 38x Sep2026E EPS). At CMP, the stock trades at 44/35.7x its FY25/FY26E EPS.

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Larsen and Toubro Technology - 300824 - khan