Sunday, July 18, 2021

L&T Tech shares surge 20%, hit all-time high | What to do Now?

ltts , finvestonline.com


L&T Technology Services (LTTS)


➽  Shares of L&T Technology Services (LTTS) jumped 20 percent to hit their fresh record high of Rs 3,492.2  in intraday trade on July 15, a day after the technology firm reported an 84.5 percent year-on-year (YoY) jump in its June quarter net at Rs 216.2 crore.The stock closed at Rs 3,465.65, up 19.08 %.

Apart from the numbers, the revenue growth guidance boosted investor sentiment. The company has upped its revenue growth guidance to 15-17 percent in FY22 as against the earlier 13-15 percent.

While LTTS has delivered largely flat growth over FY19-21 (1 percent revenue CAGR), due to COVID-19 and ramp down at key clients (partly due to external issues), we can expect a strong growth rebound (18 percent CAGR over FY21-23E).


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➽ Apart from the numbers, the revenue growth guidance boosted investor sentiment. The company has upped its revenue growth guidance to 15-17 percent in FY22 as against the earlier 13-15 percent.


➽  While LTTS has delivered largely flat growth over FY19-21 (1 percent revenue CAGR), due to COVID-19 and ramp down at key clients (partly due to external issues), we can expect a strong growth rebound (18 percent CAGR over FY21-23E).


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Charts & Price Outlook


ltts , finvestonline.com

➽  The momentum is likely to sustain for the remaining year, which will help LTTS deliver growth even higher than the top-end of its guidance. Hence, we are raising the target price as we increase target multiple to 35 times from 30 times, along with valuation rollover to Q3FY23E.

Currently stock is in strong uptrend with strong momentum and still we should follow buy on dips strategy on this stock . 3150- 3200 is currently good buying zone in any correction. The stock has still potential to deliver long term consistence return . The immediate levels to watch is 4285 in short to mid term and 5439 in long term. Hold and accumulate on dips. 







Thanks for your Precious Time.


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