Shares of this IT stock is expected to reach a target price of Rs. 6250 which is almost 16% appreciation in price from its current market price of Rs. 5400. In the last 1 year, this tech stock have generated over 70% returns for its investors.
The company with a market cap of ₹ 57,504.96 Cr is trading near its 52 week high price of 5955. The company we are talking about is LTTS (L&T Technology Services). Now lets talk about the company’s fundamentals.
After Analyzing the financial data of LTTS we can see that the company stands on a strong foundation. This strength in company’s fundamentals is particularly highlighted by its status which is virtually debt-free. This aspect is crucial as it tells us that the company is not burdened by any loan repayments. This gives them more financial freedom and stability in their operations. Having such stability in business is a desirable quality for any company as it enables them to manage their risk effectively and invest in future opportunities.
Another notable aspect is the LTTS’s highly effective cash conversion ratio, at 113.36 Cr. This shows that L&T Technology Services’s efficiency in converting its profits into actual cash flow. In simple terms, they are not just making profits on paper; they are also effectively turning these profits into usable cash. Having a good cash flow is essential for day-to-day operations, funding new projects, or even returning value to existing shareholders.
The quarterly results of the company further reinforce its strong performance. A consistent growth trajectory is visible in net sales, with a steady increase from September 2022 to September 2023. This indicates a growing demand for the company’s products or services, a positive sign for any investor or stakeholder. The total expenditure also increases, but this is to be expected with expanding sales. More importantly, the operating profit follows an upward trend, which suggests the company is not only increasing its sales but also managing its costs effectively to ensure profitability growth.
The company’s quarterly results really highlight its strong performance. We can see a steady growth in net sales from September 2022 to September 2023. This suggests that more and more people are buying the company’s products or services, which is great news for investors and stakeholders. As the sales increase, it’s natural that the total expenses also go up. But what’s important here is that the operating profit is also growing. This means that LTTS isn’t just selling more, but it’s also managing its costs well to make sure it earns more profit.
Looking at other financial details like other income, interest, and depreciation, there are some ups and downs. However, these don’t really overshadow the overall positive trend. L&T Technology Services’s profit before tax and profit after tax numbers are rising over time, showing that the company is not only making money but also keeping more of it as profit. This is a key indicator of a successful business.
Lastly, LTTS which is known for building the world’s first Automated Welding Robots, Solar drones, and remarkable R&D services is loved by companies globally.
