L&T Technology Services Ltd.
NSE: LTTSL&T Technology Services Ltd.: A 30-second snapshot
L&T Technology Services (LTTS) is an engineering R&D services company currently priced at Rs 3,495, down 18.91% over 12 months and 26.05% from its 52-week high, trading below its 200-DMA of Rs 3,972 while having reclaimed the 50-DMA at Rs 3,419. Trailing PE stands at 30.2x -- the highest among its 6-peer IT cohort -- against a forward PE of 21.4x, with ROE at 19.54% and a quality score of 42 out of 100. Q4 results showed USD revenue of $306 million and a new strategic partnership with Emerson was announced in May 2026.
P/E
30.2
Forward P/E
21.4
ROE
+19.5%
Debt / Equity
8.91
Profit Margin
+11.6%
Div. Yield
+1.7%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
57/100
News
8 headlines · 8 positive · 0 negative
L&T Technology Services and Emerson Announce a Global Cooperation and Strategic Engagement to Drive Innovation in Engineering Excellence - afp.com
afp.com
Earnings Update: L&T Technology Services Limited (NSE:LTTS) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts - simplywall.st
simplywall.st
LTTS records nearly 10% sequential growth in Q4 PAT; USD revenue rises to $306 million - Business Standard
Business Standard
Highest ever dividend of Rs 40 on every share by IT stock; up 15% in past one month - Record date fixed - Business Today
Business Today
LTTS' Revenue Grew 14% By Engineering Intelligence - fintechbiznews.com
fintechbiznews.com
Recent context
- ·Q4 FY26 results reported USD revenue of $306 million with approximately 10% sequential PAT growth; analysts updated forward estimates post-results, with the mean analyst rating standing at 2.97 across 29 analysts (1-5 scale, lower = more constructive).
- ·LTTS and Emerson announced a global cooperation and strategic engagement in May 2026 targeting engineering excellence and innovation, broadening the company's industrial technology client base.
- ·The company declared its highest-ever dividend of Rs 40 per share; the record date has been fixed and the dividend yield stands at 1.66% at the current price of Rs 3,495.
Strengths
- +ROE of 19.54% has exceeded 15% in 4 of the available measurement years and FCF has been positive in 4 years, indicating consistent capital generation relative to equity.
- +Forward PE of 21.4x represents a 29% compression from the trailing 30.2x, reflecting analyst consensus earnings forecasts (mean rating 2.97 across 29 analysts on a 1-5 scale, lower = more constructive) that embed a meaningful acceleration in profitability.
- +Dividend yield of 1.66% with a record highest-ever declared dividend of Rs 40 per share; 5-year earnings growth of +6.7% has been sustained alongside revenue headwinds, indicating margin improvement.
- +Q4 FY26 PAT grew approximately 10% sequentially to deliver USD revenue of $306 million, and the Emerson global cooperation agreement announced May 2026 expands the industrial engineering client pipeline.
Weaknesses
- −Stock has declined 18.91% over 12 months and remains approximately 14% below its 200-DMA of Rs 3,972, with the 52-week drawdown at 26.05%; nearest support levels are Rs 3,362, Rs 3,140, and Rs 3,050.
- −5-year revenue growth of -4.2% is negative, meaning cumulative top-line has contracted even as earnings grew 6.7%; earnings per rupee of revenue has improved but the revenue base itself has shrunk.
- −D/E of 8.9 is the highest leverage ratio in the 6-peer IT cohort -- TCS, Infosys, HCLTECH, and Wipro carry near-zero debt -- and the debt trend is classified as rising.
- −LTTS ranks 6th of 6 on PE (30.2x vs cohort range 14.6x to 25.3x) and 5th of 6 on quality score (42 vs 65 for Infosys and 62 for TCS), placing it at the premium-valuation and below-median-quality end of this peer group.
Open questions
- ?Does the compression from trailing PE 30.2x to forward PE 21.4x rest on achievable earnings estimates, or does it assume a revenue recovery that the 5-year negative top-line growth trend has not yet demonstrated?
- ?Is the D/E of 8.9 -- the highest in the peer group with a rising debt trend -- structured primarily as operating leases and working-capital facilities, or does it represent long-term financial leverage that constrains future capital allocation?
- ?The Emerson partnership and engineering R&D positioning differentiate LTTS from large-cap IT peers -- does the revenue mix by vertical show a structural shift that explains the negative 5-year top-line trend versus sector peers growing revenues?
- ?With ROE at 19.54% (4th of 6 in the peer group) and a quality score of 42 versus the sector leader at 65, what operational or mix changes would be required to close the quality gap with higher-ranked IT peers?
Peer comparison: IT
Ranks 5 of 6 on qualityTechnical state
Current price
₹3,495.10
SMA 50
₹3,419.34
SMA 200
₹3,972.05
RSI (14)
46.0 (neutral)
From 52w high
-26.1%
1Y return
-18.9%
3M return
-8.9%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumStock is down 18.91% over 12 months and 26.05% from its 52-week high, trading below the 200-DMA (Rs 3,972) for an extended period; the 50-DMA (Rs 3,419) has been reclaimed but the gap to the 200-DMA remains approximately 14%.
- medium5-year revenue growth is negative at -4.2% while 5-year earnings growth is +6.7%, indicating earnings improvement has been driven by margin expansion rather than top-line volume growth; revenue contraction over a multi-year horizon is atypical for a premium-PE engineering services name.
- mediumD/E of 8.9 is the highest among the 6 IT peers tracked; TCS, Infosys, HCLTECH, and Wipro carry near-zero or very low leverage, and the debt trend is flagged as rising.
- mediumLTTS ranks last (6th of 6) on PE at 30.2x versus a peer range of roughly 14.6x to 25.3x, and 5th of 6 on quality score (42 vs sector leader Infosys at 65 and TCS at 62), indicating a relative valuation premium alongside below-median quality in this cohort.
Cross-section contradictions
- PE of 30.2x is the highest in the 6-peer IT cohort, yet 5-year revenue growth is negative (-4.2%); a premium multiple typically accompanies above-average top-line expansion rather than revenue contraction.
- Forward PE compresses to 21.4x from a trailing 30.2x, implying embedded analyst earnings-acceleration forecasts that have not yet translated into positive price momentum -- the stock is down 18.91% over 12 months and below its 200-DMA.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days