L&T Technology Services share price gains after Q1 results; Should you buy? Here’s what brokerages say
L&T Tech posted a consolidated net profit of ₹311.1 crore in the first quarter of FY24, which was 8.5% lower than ₹340 crore in the previous quarter. The company’s revenue during Q1FY24 declined 2.9% to ₹2,301 crore from ₹2,370.6 crore, QoQ. In dollar terms, its revenue fell to $280 million from $288.4 million in the last quarter.
EBIT decreased 6.7% to ₹395 crore from ₹423.1 crore, while EBIT margin also contracted by 70 basis points to 17.2% in April-June quarter on a sequential basis, due to the integration of the SWC acquisition. Read here: L&T Tech Q1 Results: Attrition rate to multi-million dollar projects. Check key highlights here L&T Technology Services’ (LTTS) Q1 revenue missed most analysts’ estimates, impacted by SWC seasonality.
Here’s what brokerages said on L&T Technology Services’ Q1 performance: Morgan Stanley said that LTTS’ Q1 revenue miss was sharp on an organic basis, while margin performance was resilient. The global brokerage house maintained ‘Underweight’ rating on the stock with a target price of ₹3,200 per share. Citi has a Sell rating on the stock with a target of ₹3,060 per share. LTTS’ revenue missed Citi’s estimates, while the brokerage is of the view the company’s pipeline remains healthy as deals in pipeline are higher in Q1FY24 versus Q4FY23.
Also Read: Polycab share price hits 52-week high, gains 4% on robust Q1 results Nomura said LTTS’ Q1FY24 missed revenue estimates, while it believes 20% revenue growth target is lofty. It has a Reduce rating with a target of ₹2,980 per share. HDFC Securities has built low-teen organic revenue CAGR over FY23-26E, which is in line with its historical growth, supported by a strong and diversified engineering services pedigree. “LTTS maintained its
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