L&T Technology Services Ltd 2021 Multibagger Analysis

March 22, 2021 By Futurecaps Advisor 0

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

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

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.

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