L&T Technology Services Limited
L&T Technology Services Limited Fundamental Analysis
L&T Technology Services Limited (LTTS.NS) shows strong financial fundamentals with a PE ratio of 28.07, profit margin of 10.71%, and ROE of 20.40%. The company generates $117.6B in annual revenue with strong year-over-year growth of 10.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LTTS.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLTTS.NS demonstrates superior asset utilization.
Valuation Score
ModerateLTTS.NS shows balanced valuation metrics.
Growth Score
ModerateLTTS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentLTTS.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateLTTS.NS maintains healthy but balanced margins.
Key Financial Metrics
Is LTTS.NS Expensive or Cheap?
P/E Ratio
LTTS.NS trades at 28.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LTTS.NS's PEG of -17.73 indicates potential undervaluation.
Price to Book
The market values L&T Technology Services Limited at 5.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.31 times EBITDA. This signals the market has high growth expectations.
How Well Does LTTS.NS Make Money?
Net Profit Margin
For every $100 in sales, L&T Technology Services Limited keeps $10.71 as profit after all expenses.
Operating Margin
Core operations generate -17.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.40 in profit for every $100 of shareholder equity.
ROA
L&T Technology Services Limited generates $12.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
L&T Technology Services Limited generates limited operating cash flow of $4.81B, signaling weaker underlying cash strength.
Free Cash Flow
L&T Technology Services Limited produces free cash flow of $4.15B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $39.12 in free cash annually.
FCF Yield
LTTS.NS converts 1.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-17.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.006
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
-0.30
vs 25 benchmark
How LTTS.NS Stacks Against Its Sector Peers
| Metric | LTTS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.07 | 34.49 | Better (Cheaper) |
| ROE | 20.40% | 1124.00% | Weak |
| Net Margin | 10.71% | -133673.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 1.88 | 5.81 | Neutral |
| ROA | 12.65% | -308769.00% (disorted) | Strong |
LTTS.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews L&T Technology Services Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.97%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
52.36%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
128.55%
Industry Style: Growth, Innovation, High Beta
High Growth