HDFC Securities is bullish on Larsen and Toubro Technology Services has recommended buy rating on the stock with a target price of Rs 2030 in its research report dated January 18, 2019.
HDFC Securities' research report on Larsen and Toubro Technology Services
L&T Technology Services (LTTS) reported strong revenue and operating performance, in-line with expectations and increased its FY19E rev guidance to 24% (21% earlier). A blip emerges with decline expected in a large account in FY20E.However, growth outlook is a robust ‘mid-teens’ for FY20E with improvement in margins (CC terms), supported by continuity in strong deal momentum and a robust pipeline. Revenue came at USD 185.7mn, 4.8/23.0% QoQ/YoY and EBITDA% stood at 18.4%, +28bps QoQ.
Outlook
Expect rev/EPS CAGR at 18/28% CAGR over FY18-21, factoring USD rev growth at 24.1%, 15.0%, 17.7% and EBITDA% at 17.7/18.3/19.5% for FY19/20/21E. Maintain BUY with TP of Rs 2,030, at 22x Dec-20E.
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