L&T Technology Services Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹58,171 crore, a PE ratio of 45.8, a debt-to-equity ratio of 0.12 and a return on equity (ROE) of 25.8%. These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
L&T Technology Services Ltd Overview
L&T Technology Services Ltd (LTTS) is a global leader in Engineering and R&D services, offering innovative solutions across industries like healthcare, telecommunications and transportation. With over 1,343 patents, LTTS specializes in disruptive technologies such as AI, smart manufacturing and autonomous systems, driving technological advancements worldwide.
The company has a market capitalization of ₹58,171 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 8.40% below its 52-week high and 33.8% above its 52-week low.
L&T Technology Services Ltd Financial Results
L&T Technology Services Ltd’s financial results for FY24 show growth, with sales reaching ₹9,647 crore, compared to ₹6,570 crore in FY22 and ₹8,014 crore in FY23. Operating profit increased to ₹1,919 crore in FY24 from ₹1,415 crore in FY22.
- Revenue Trend: Sales increased from ₹6,570 crore in FY22 to ₹8,014 crore in FY23 and further to ₹9,647 crore in FY24, reflecting a strong upward trajectory and expanding business operations.
- Equity and Liabilities: L&T Technology’s equity capital stood at ₹21 Crores in FY24, with reserves increasing to ₹5,030 Crores. Total liabilities increased to ₹8,005 Crores in FY24 from ₹7,772 Crores in FY23, indicating a growing financial base.
- Profitability: Operating profit rose from ₹1,415 crore in FY22 to ₹1,711 crore in FY23 and ₹1,919 crore in FY24. However, OPM% slightly declined from 21.05% in FY22 to 20.81% in FY23 and 19.47% in FY24.
- Earnings Per Share (EPS): EPS grew steadily, from ₹91.1 in FY22 to ₹111.36 in FY23 and reached ₹123.28 in FY24, highlighting increasing profitability and solid returns for shareholders over three fiscal years.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) slightly decreased to 25.8% in FY24 from 26% in FY23, suggesting a modest improvement in returns on shareholders’ equity.
- Financial Position: Net profit increased from ₹960.6 crore in FY22 to ₹1,174 crore in FY23, reaching ₹1,306 crore in FY24. Dividend payout ratios remained consistent, rising slightly from 38.42% in FY22 to 40.56% in FY24.
L&T Technology Services Ltd Financial Analysis
| FY24 | FY23 | FY22 | |
| Sales | 9,647 | 8,014 | 6,570 |
| Expenses | 7,728 | 6,303 | 5,155 |
| Operating Profit | 1,919 | 1,711 | 1,415 |
| OPM % | 19.47 | 20.81 | 21.05 |
| Other Income | 207.3 | 208 | 152.4 |
| EBITDA | 2,126 | 1,919 | 1,567 |
| Interest | 50.9 | 43.5 | 43.7 |
| Depreciation | 271.6 | 231.5 | 214.4 |
| Profit Before Tax | 1,804 | 1,644 | 1,309 |
| Tax % | 27.58 | 28.57 | 26.63 |
| Net Profit | 1,306 | 1,174 | 960.6 |
| EPS | 123.28 | 111.36 | 91.1 |
| Dividend Payout % | 40.56 | 40.41 | 38.42 |
All values in ₹ Crores.
L&T Technology Services Limited Company Metrics
L&T Technology Services Ltd has a market cap of ₹58,171 crore and a current stock price of ₹5,496, reflecting strong financial performance with a P/E ratio of 45.8 and a net profit of ₹1,271 crore.
- Market Cap: L&T Technology Services Ltd’s market capitalization stands at ₹58,171 crore, indicating its significant presence and valuation in the engineering and R&D sector.
- Book Value: The book value per share is ₹478, providing insight into the company’s net asset value and overall financial health for shareholders.
- Face Value: The face value of L&T Technology Services Ltd is ₹2.00, representing the nominal value of its shares and essential for calculating dividends.
- Turnover: With an asset turnover ratio of 1.10, the company effectively generates revenue relative to its total assets, showcasing operational efficiency.
- PE Ratio: The stock’s price-to-earnings (P/E) ratio is 45.8, reflecting investor confidence in future earnings growth and indicating a premium valuation.
- Debt: L&T Technology Services Ltd has a manageable debt level of ₹627 crore, resulting in a low debt-to-equity ratio of 0.12, indicating financial stability.
- ROE: Return on equity (ROE) is 25.8%, demonstrating strong profitability and efficient use of shareholder equity to generate returns over time.
- EBITDA Margin: The EBITDA margin is reported at 20.8%, reflecting the company’s ability to generate earnings before interest, taxes, depreciation and amortization relative to its revenue.
- Dividend Yield: The dividend yield stands at 0.90%, indicating a moderate return for investors through dividends, complementing overall shareholder value in the company.
L&T Technology Services Ltd Stock Performance
The table shows L&T Technology Services Ltd’s return on investment, with 28% over five years, 7% over three years, and 19% over the last year, indicating strong long-term growth and performance consistency for investors.
| Period | Return on Investment (%) |
| 5 Years | 28% |
| 3 Years | 7% |
| 1 Year | 19% |
Example:
- An investment of ₹1,00,000 yielded ₹1,28,000 in 5 years.
- Investing ₹1,00,000 resulted in ₹1,07,000 returns over 3 years.
- A ₹1,00,000 investment earned ₹1,19,000 in just 1 year.
L&T Technology Peer Comparison
The competitor analysis of L&T Technology Services Ltd reveals its market capitalization of ₹58,171.45 crore. Compared to peers like TCS (₹1,558,310.3 crore) and Infosys (₹784,278.32 crore), LTTS demonstrates competitive growth potential, with a PEG ratio of 4.07 and a 1-year return of 18.84%. Other notable competitors include HCL Technologies and Wipro, emphasizing a robust landscape in the engineering and R&D sectors.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3M return % | 1Y return % |
| 1 | TCS | 4307 | 1558310.3 | 3.99 | 14.05 | 20.52 |
| 2 | Infosys | 1888.85 | 784278.32 | 2.62 | 23.45 | 26.97 |
| 3 | HCL Technologies | 1741 | 472449.03 | 3.1 | 21.32 | 35.8 |
| 4 | Wipro | 536.45 | 280629.59 | 6.46 | 9.7 | 25.12 |
| 5 | LTIMindtree | 6451.8 | 191085.04 | 1.69 | 24.21 | 16.31 |
| 6 | Tech Mahindra | 1600.45 | 156579.96 | -5.53 | 14.69 | 25.98 |
| 7 | Persistent Sys | 5243 | 81083.06 | 2.57 | 31.32 | 79.02 |
| 8 | L&T Technology | 5496.3 | 58171.45 | 4.07 | 12.06 | 18.84 |
L&T Technology Shareholding Pattern
The shareholding pattern of L&T Technology Services Ltd indicates a stable promoter holding of 73.69% as of June 2024. Foreign institutional investors (FII) hold 4.46%, domestic institutional investors (DII) have 13.3%, while retail and others account for 8.54%.
| Jun 2024 | Mar 2024 | Dec 2023 | |
| Promoters | 73.69 | 73.74 | 73.75 |
| FII | 4.46 | 5.52 | 5.63 |
| DII | 13.3 | 12.32 | 11.56 |
| Retail & others | 8.54 | 8.42 | 9.06 |
All values in %
L&T Technology Services Ltd History
L&T Technology Services Ltd (LTTS), a subsidiary of Larsen & Toubro, was founded to become a global leader in Engineering and R&D (ER&D) services. The company has grown steadily, offering innovative solutions in industries such as healthcare, telecommunications and transportation.
With 1,343 patents filed and expertise in disruptive technologies like AI, collaborative robots and autonomous transport, LTTS continues to revolutionize engineering design and smart manufacturing. Its projects include developing the world’s first autonomous welding robot and solar connectivity drones for rural areas.
Globally recognized for its innovation, LTTS operates 108 R&D centers, serving 378 customers, including 57 of the Global Top 100 ER&D spenders. The company’s commitment to multi-vertical expertise and cutting-edge solutions underscores its leadership in the ER&D space.
How To Invest In L&T Technology Share?
Investing in L&T Technology Services shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for L&T Technology Services shares and place your buy order.
L&T Technology Fundamental Analysis FAQs
L&T Technology Services Ltd has a market capitalization of ₹58,171 crore, a PE ratio of 45.8, a debt-to-equity ratio of 0.12, and an ROE of 25.8%, reflecting its strong financial position and effective debt management with solid returns.
L&T Technology Services Ltd has a market capitalization of ₹58,171 crore, representing the total market value of its outstanding shares, highlighting its significant role in the Indian oil drilling and exploration sector.
L&T Technology Services Limited (LTTS) is a global leader in Engineering and R&D services, specializing in innovative solutions like AI, smart manufacturing, and autonomous systems. It operates across multiple industries, with over 1,343 patents and a global clientele.
L&T Technology Services Limited (LTTS) is a publicly listed company and a subsidiary of Larsen & Toubro (L&T), a leading Indian multinational conglomerate. L&T holds a significant stake in LTTS, which operates independently in the engineering sector.
The main shareholders of L&T Technology Services Ltd include its parent company, Larsen & Toubro, which holds a significant stake. Other key shareholders are institutional investors, mutual funds, foreign portfolio investors (FPIs) and retail investors, reflecting broad market participation.
L&T Technology Services (LTTS) operates in the Engineering and Research & Development (ER&D) industry. It provides cutting-edge solutions in areas like product design, smart manufacturing and digitalization, serving sectors such as healthcare, telecommunications, transportation and industrial products.
To invest in L&T Technology Services Ltd shares, you can open a demat and trading account through brokerage platforms like Alice Blue. After registering, fund your account, search for LTTS shares and place a buy order based on your preferences.
Determining if L&T Technology Services is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects and industry comparisons. With a PE ratio of 45.8, L&T Technology Services might be fairly valued, reflecting market expectations and moderate growth potential.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
