Making investments in the stock market can be both exciting and nerve-racking, especially when it comes to selecting the right stocks that promise high returns. Out of all the options that are available, L&T, a leading Indian mega-corporation, has piqued the interest of many investors in recent years due to its consistent growth and performance. With L&T’s stock price target expected to go up from 6,778.81 in 2023 to 28,205.10 in 2029, everyone is wondering if this stock is a good buy. In this article, we will examine L&T’s financial statements over the last five years, focusing on revenue growth, profit growth, and PAT to see if it is a good stock to add to your portfolio.
To reach Rs 2,096 crore in revenue from operations, it increased by 19.4% YoY and 2.3% quarter over quarter (QoQ), with robust growth in the major industries of transportation, plant engineering, and industrial products. In constant currency (CC) terms, the firm recorded sales growth of 2.2% QoQ, while in dollar terms, revenue increased by 2.9% QoQ to $255.1 million. The revenue increased by 2.3% QoQ in rupees. The company’s EBIT (earnings before interest and taxes) margin remained constant at 18.7% QoQ as increased SG&A costs offset the drop in labor costs. The firm added 584 net new employees during the quarter, while LTM attrition decreased by 110 bps.
The company in Q4 won a large deal of $40 million & 3 other deals of $10 million worth total contract value (TCV).
The business forecasts organic growth of 10% or more and CC revenue growth of 20% or more for FY24.
The pipeline is pretty solid and we are currently discussing many projects. comparable to the previous year, we have signed a comparable amount of transactions in TCV in FY23. The fact that our five major categories performed exceptionally well as the year came to a close bodes well for us moving forward, according to LTTS CEO Amit Chadha.”
The Transportation segment’s pipeline is still in good shape, and LTTS aims to boost the segment’s revenue by 4% QoQ in the first quarter of FY24. The Engineering and R&D (ER&D) services industry has a better outlook than the larger IT services universe, so valuations have corrected sharply over the last year and are now at 22x FY25E EPS, which we view as attractive, according to a note from Motilal Oswal Financial Services (MOFSL).
Due to its excellent skills, multi-vertical presence, and significant wallet share, LTTS should profit from the faster spending on ER&D that is being driven by digitization. The brokerage business anticipates that during the upcoming years, the company will generate excellent revenue growth. “We still see LTTS as benefiting from the expanding use of ER&D Services. Due to a strong Q4 performance, we increase our EPS projections for FY24–25 by 3% and have a Buy recommendation for the company. According to 26x FY25E EPS, we value LTTS at Rs 4,040, MOFSL stated.
Latest news about L&T Technology
➤ The company in Q4 won a large deal of $40 million & 3 other deals of $10 million worth total contract value (TCV).
➤In order to address claims between 2014 and 2019, LTTS underpaid visa costs owing to the US by obtaining cheap B-1 visas rather than more expensive H-1B visas, the firm has agreed to pay $9,928,000. This is allegedly in violation of the False Claims Act.
➤The engineering services subsidiary of Larsen & Toubro Ltd. is boosting its investment in electric and self-driving vehicle technology with an emphasis on utilising India’s experience as a base for international manufacturers looking to develop in this field. According to CEO Amit Chadha, L&T Technology Services Ltd., which offers services to clients including BMW AG and Airbus SE, is looking for rapid growth after hitting $1 billion in revenue in the fiscal year that ended in March. The company, which is connected to the biggest building conglomerate in India, expects to make $1.5 billion in sales over the next two years. In order to do this, the business has positioned itself closer to automakers over the past three years by establishing design and engineering centres for autonomous and electric car technologies in Bengaluru, Munich, and Peoria, Illinois. Manufacturers of next-generation automobiles are gaining from the trend towards more environmentally friendly solutions, in contrast to clients in the IT, telecom, and construction industries who are struggling with a slow economy and increased inflation rates.
➤For the fourth time in the John Deere Achieving Excellence (AE) Programme, L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a top worldwide pure-play engineering services provider, has been recognised as a Partner-level supplier. Deere & Company’s top supplier rating is Partner-level designation. The award has been given to LTTS, an organisation with its headquarters in India, in honour of its devotion to offering goods and services of exceptional quality as well as its dedication to ongoing improvement. Engineering services in areas like digital, product simulation, embedded software development & validation, mechanical design, cost management, and analysis are just a few of the many services that LTTS offers to John Deere.
Below are the trading platforms that you can use to purchase L&T Technology shares:
|When||Maximum Price||Minimum Price|
The table shows the projected L&T share price for the year 2023. The maximum price is expected to be ₹6,778.81 in December, while the minimum price is forecasted to be ₹2,914.96 in March. This suggests a considerable range of fluctuation in the share price over the course of the year. However, the overall trend seems to be bullish, with the share price projected to increase steadily throughout the year, except for a slight dip in May and October. The growth percentage over the year is expected to be substantial, with an increase of over 100% between the minimum and maximum prices.
|When||Maximum Price||Minimum Price|
The projected L&T share price for 2024 appears to be on an upward trend, with a maximum price of ₹9,490.63 and a minimum price of ₹4,918.12. The maximum price is expected in December 2024, while the minimum price is predicted for May 2024. This indicates a significant range of price fluctuation, with a potential return for investors who are able to buy at the lower end of the range and sell at the higher end. However, it is important to note that there may be periods of bearish activity, with prices dipping in April and July before rising again.
|When||Maximum Price||Minimum Price|
According to the projected L&T share price for 2025, there appears to be a continued upward trend, with a maximum price of ₹11,512.28 and a minimum price of ₹6,680.47. The maximum price is expected in December 2025, while the minimum price is predicted for May 2025. The average target price for the year appears to be around ₹9,500, with an upside potential of over ₹2,000 from the current share price. Based on these projections, it may be advisable for investors to consider L&T as a potential investment opportunity, particularly given the sustained growth over the past few years. Overall, the projections for L&T in 2025 suggest a positive outlook with a potential for growth.
|Year||Maximum Price||Minimum Price|
Looking at the data provided, it appears that L&T’s share price is likely to experience some fluctuations in the coming years. The maximum price for 2026 is ₹8,058.60, while the minimum price is ₹5,641.02. This may indicate a bit of bearish sentiment, but it’s important to remember that these are just predictions and not guarantees.
Moving on to 2027, the maximum price is ₹6,849.81, and the minimum price is ₹4,794.87. This shows that the stock could continue to experience some ups and downs. However, in 2028, things are expected to look up with a maximum price of ₹12,329.66 and a minimum price of ₹8,630.76, indicating a bullish trend.
Looking at 2029 and 2030, the stock is predicted to see significant growth. The maximum price for 2029 is ₹25,327.02, and the minimum price is ₹17,728.92. This is an average target of ₹21,528.97, which is quite an impressive upside potential. Similarly, in 2030, the maximum price is predicted to be ₹28,205.10, and the minimum price is ₹19,743.57, with an average target of ₹23,974.34. Based on these predictions, it appears that L&T could be a good investment opportunity in the coming years, although it’s always important to conduct your own research before making any investment decisions.
Financial Condition of L&T Technology: Last 5 years
|Profit before tax||677.8||1,031.40||1,100.20||897.3||1,309.20|
|Price to earning||25.03||21.36||14.82||42.01||56.28|
The financial statement of L&T over the past five years shows a mixed trend in terms of the company’s growth. The revenue growth of the company has been inconsistent, with a maximum of 17.4% in FY19 and a minimum of 2.4% in FY21. However, the company’s net profit has shown steady growth, with a maximum of 51.8% in FY19 and a minimum of 11.2% in FY21. The company’s EPS has also shown an increasing trend, with a maximum of 90.71 in FY22 from 49.37 in FY18. The OPM of the company has also shown an upward trend, with a maximum of 21.54% in FY22 from 15.36% in FY18. The dividend payout ratio has also increased over the years, with a maximum of 38.58% in FY22 from 32.41% in FY18. The company’s P/E ratio has also shown a fluctuating trend, with a maximum of 56.28 in FY22 and a minimum of 14.82 in FY20. Overall, the company’s profit and loss statement indicate that L&T has been able to maintain a steady profit growth rate over the years, despite the inconsistent revenue growth.
Sharekhan has suggested holding on to L&T Technology Ltd with a predicted price of Rs3800.
Motilal Oswal has given a buy call on L&T Technology. According to him, you can continue buying L&T Technology shares with a target price of Rs4040.
L&T Technology Services Ltd’s share price has been volatile in the past, with fluctuations in response to market conditions and the company’s financial performance.
The current share price of L&T Technology Services Ltd is subject to change based on market conditions, but as of May 24th, 2023, it is 3840 INR.
Answer: Various factors such as company performance, economic conditions, industry trends, government policies, and global events may impact L&T Technology Services Ltd’s share price in the future.
What is the projected revenue growth for L&T Technology Services Ltd?
According to market analysis, L&T Technology Services Ltd is expected to experience steady revenue growth over the next few years.
It is difficult to predict with certainty whether L&T Technology Services Ltd’s share price will reach 1000 INR by 2025, as share price is subject to various market conditions and performance factors.
What is L&T Technology Services Ltd’s profit margin?
L&T Technology Services Ltd’s profit margin varies based on the company’s financial performance, but it has historically been competitive within its industry.
As with any investment, there are risks associated with investing in L&T Technology Services Ltd’s shares, including market volatility, economic conditions, and the company’s performance.
What is the dividend payout history of L&T Technology Services Ltd?
L&T Technology Services Ltd has historically paid out dividends to its shareholders, with the dividend payout varying based on company performance.
The decision to buy L&T Technology Services Ltd’s shares should be based on individual financial goals, risk tolerance, and market analysis. It is recommended to consult with a financial advisor before making any investment decisions.
In conclusion, L&T has shown a steady growth in its income over the past five years with a revenue growth of 74.5% from March 2018 to March 2022. The PAT has also shown a consistent growth rate of 17.5% during this period. With a positive profit growth rate of 24.6% in the last financial year, it is clear that L&T is on the path of sustained growth. Looking at the share price target projections for 2023 to 2030, it is expected that the shares of L&T will continue to perform well in the coming years. The maximum price target for 2025 is ₹11,512.28 and for 2030 is ₹28,205.10, with a minimum price target of ₹7,348.51 for 2025 and ₹17,728.92 for 2029. Therefore, it can be a good investment choice for those looking to invest in a company with a strong track record of growth and profitability.
What did we learn?
- 1 Latest news about L&T Technology
- 2 How to purchase L&T Technology shares?
- 3 L&T Technology Share Price Prediction: 2023 to 2030.
- 4 Financial Condition of L&T Technology: Last 5 years
- 5 L&T Technology share price target by Experts
- 6 FAQS
- 6.1 What has been the historical performance of L&T Technology Services Ltd’s share price?
- 6.2 What is the current share price of L&T Technology Services Ltd?
- 6.3 What are the factors that may impact L&T Technology Services Ltd’s share price in the future?
- 6.4 What is the projected revenue growth for L&T Technology Services Ltd?
- 6.5 Can L&T Technology Services Ltd’s share price reach 1000 INR by 2025?
- 6.6 What is L&T Technology Services Ltd’s profit margin?
- 6.7 What are the risks associated with investing in L&T Technology Services Ltd’s shares?
- 6.8 What is the dividend payout history of L&T Technology Services Ltd?
- 6.9 Should I buy L&T Technology Services Ltd’s shares?
- 7 Conclusion