Sharekhan has given Buy recommendation for L&T Technology Services with a target price of Rs. 5900 in its research report issued on Oct 20, 2021
LTTS is one of the best plays in the faster growing ERD space for its multi-industry expertise, deep engineering capabilities, end-to-end offerings, and long standing relationships with large enterprises worldwide. LTTS is well-placed to gain market share among global competitors because of being the preferred engineering partner among clients, strong customer-centric approach and a full-service model. We expect LTTS’ USD revenue and earnings to post a CAGR of 18% and 23% over FY2022-FY2024E. At CMP, the stock trades at 44x/37x its FY2023E/FY2024E earnings estimates, which justifies premium valuations, given strong deal wins, presence in the fast-growing ERD segment, and consistent dividend pay-outs. Hence, we retain a Buy on LTTS with a revised PT of Rs. 5,900.