In this article, we can explore the possibility of L and T Technology Services Ltd as a Multibagger 2021 Stock based on Value Investing principles. L and T Technology Services Ltd is engaged in providing engineering solutions to various industries. Its services include product design, analysis, prototyping and testing, embedded system design, manufacturing engineering, plant and construction engineering, asset information management, and engineering process support.
| Website | https://www.ltts.com/ |
| CMP | 2,597.30 INR |
About L&T Technology Services Ltd
L&T Technology Services is one of the leading global pure-play Engineering Research and Development (ER&D) services company. ER&D services are a set of services that provides to manufacturing, technology and process engineering companies, to help them develop and build their products, processes and infrastructure required to deliver products and services to end customers. Their other services include
- TRANSPORTATION
- INDUSTRIAL PRODUCTS
- PLANT ENGINEERING
- SEMICONDUCTORS
- MEDIA & ENTERTAINMENT
- CONSUMER ELECTRONICS
- HEALTHCARE
- TELECOMMUNICATIONS
- OIL & GAS
- SOFTWARE PRODUCTS
L&T Technology Services was founded in 2009 as L&T Integrated Engineering Services. In its first year, the company generated $70 million in revenue. Initially, it only operated as the engineering arm of the L&T and in 2013, as a result of the L&T’s strategy, the parent company was split into “nine verticals and six subsidiaries”, of which this was one of them. It began to expand its engineering services as a developer of new technology solutions to other companies under its new brand name L&T Technology Services (LTTS).
About Product Brands
Unconventional times call for unconventional new shifts in manufacturing. This is the new normal, what manufacturers need is the ability to do more with less effort, deliver services remotely through online data and cloud platforms, reduce design timelines, and increase production throughput.
At LTTS, Their service offerings are based on three core pillars: Social Distancing, Business Continuity and Business Sustainability. The following show how they help you get through these challenging times and engineer your future.
- Line Expansion & Transfer
- Frugal Product Design
- In short, it is time to be F.R.U.G.A.L – Flexible, Remote, Unconventional, Glocal and Agile.
- Asset Care
- Accelerated Operations
- Agile Supply Chain
- Content Engineering
Warren Buffet, Value & Growth Checklist
| Capitalization | ₹ 27,266.14 Cr. |  |
| Sales Increasing past 1 Year | Yes, 7% |  |
| Profit Increasing past 1 Year | Yes, 7% | |
| Durable Competitive Advantage | Yes | |
| PE Ratio | 40.30 | |
| PB Ratio | 9.81 | |
| Debt Equity Ratio | 1.23% | |
| Intrinsic Value Discount | 1899.72 | |
| Promoter Holding & Increase | 5.16% to 5.82% | |
| Multibagger Returns | 300-500% 5 Year | |
Business and Industry Analysis
- LTTS has announced that they have been selected by Schindler: The global leading providers of elevators, escalators, moving walks and other related services which is based in Switzerland as one of its key partners to provide innovative digital engineering capabilities.
- L&T Technology Services Limited provides engineering solutions, research & development (ER&D) services in North America, Europe, India, and internationally.
According to the agreement, LTTS will provide product development, innovation and engineering services & solutions that will help Schindler to accelerate its digitization and connectivity initiatives for the future.
Positives
- Bullish Reversal
- Growth in Net Profit with increasing Profit Margin (QoQ)
- The company has a Low Debt
- Increasing Revenue every quarter for the past 2 quarters
- Increasing profits every quarter for the past 2 quarters
- Annual Net Profits improving for the last 2 years
- Book Value per share Improving for last 2 years
- The company has Zero Promoter Pledge
- FII / FPI or Institutions increasing their shareholding
- The company has delivered good profit growth of 21.42% CAGR over the last 5 years
- The company has a good return on equity (ROE) track record: 3 Years ROE 31.97%
- The company has been maintaining a healthy dividend payout of 29.25%
Negatives
- Companies with growing costs YoY for long term projects
- Degrowth in Revenue and Profit
- A decline in Quarterly Net Profit with falling Profit Margin (YoY)
- Promoter decreasing their shareholding
- Declining Net Cash Flow: Companies not able to generate net cash
- Fall in Quarterly Revenue and Net Profit (YoY)
- Recent Results: Declining Operating Profit Margin and Net Profits (YoY)
SUMMARY
As per our research, we determine that
- Mid Range Momentum – Stock is Mid Range compared to Short, Medium and Long Term Moving Averages
- 160.87% away from 52 week low
- 9.18% away from 52 weeks high
- Outperformer – L&T Technology Services up by 2.46% v/s NIFTY 50 up by 0.06% in last 1 month
- F&O data suggest a Long Buildup today
As per the R&D this company is having Multibagger Potentials. However this is not a Multibagger Recommendation. You should Paid Subcribe to get the Real 500% Multibaggers. 3 Multibaggers immediately after payment.