2025-06-16-花旗集团-L_T技术服务公司（LTEH）_L_T技术服务公司（LTEH.NS）_模型更新_12页_667kb

L&T Technology Services (LTEH.NS) Citigroup Research Summary

Key Recommendations and Target Price

• Citigroup maintains a "Sell" recommendation for L&T Technology Services.
• Target price revised to Rs4,055 (up from Rs3,800), based on 27x estimated Mar 2027 EPS.
• Expected share price return: -9.0%, total return: -7.6%; dividend yield: 1.3%.

Financial Highlights (FY2024A-FY2028E)

• Net Profit/EPS: FY2024A saw net profit of Rs13,036 million and EPS of 123.02; FY2025A shows a decline to Rs12,667 million and 119.41, with an EPS growth of -2.9%. Projections indicate recovery in 2026E-2028E, with EPS reaching 150.20 and net profit 15,937, but maintaining a net margin of around 11%.
• Valuation Ratios: P/E ratio increased from 36.2x in 2024A to 37.3x in 2025A, projected to decrease to 29.7x by 2027E. P/B ratio declined from 8.8x to 5.3x, reflecting reduced book value growth.
• Growth Trends: Revenue growth slowed from 20.4% in 2024 to 10.6% in 2025, with moderate recovery expected in 2026E.

Valuation Basis

• Target price justified by a multiple of 27x Mar'27E EPS, at a discount to a five-year mean of ~32x due to lower growth visibility.
• Citigroup views P/E as appropriate for L&T Tech Services given its profitable track record.

Key Investment Risks and Upside Factors

• Downside Risk: Negative returns driven by current valuation metrics.
• Upside Catalysts: Potential for sustained share performance above the target price if US/Europe capex revives, rupee depreciates against USD/EUR/GBP, or billing rates increase. Factors include aggressive demand from corporates.

This summary captures the core analysis from the Citigroup report, focusing on recommendations, financials, and risks without incorporating additional disclosures.