PL Capital said the broad-based margin expansion enabled LTTS achieve its mid-16 per cent EBIT margin aspiration ahead of schedule, thanks to growing contribution from high-margin business.
That said, despite H1 EBIT margin reported at 16 per cent the management’s commentary on medium-term margin improvement remained conservative, with wage hikes expected to weigh on H2 profitability, the brokerage said.
"We are passing on Q2 beat and revising our EBIT margin estimates to 15.7 per cent/15.9 per cent FY27E/FY28E. We value the stock at 20 times Sep. 28E earnings to arrive at target price of Rs 3,390. The current valuations capture all positives, providing limited upside. We maintain our HOLD rating," PL Capital said.
360 ONE Capital said the management reiterated its ambition of 13-15 per cent revenue CAGR over the next five years, which it believes is slightly ambitious given near-term macro headwinds.
"We increase our target multiple 22 times (from 20 times), factoring in improved growth momentum. We maintain Hold with a revised target price of Rs 3,790 (from earlier Rs 3,380), valuing the stock at 22 times Sep-28E EPS," it said.
Anand Rathi upgraded LTTS to 'Buy' with a target price of Rs 4,336, saying a stronger deal conversion, widening AI opportunities and improving margin resilience provide greater confidence in LTTS's growth trajectory, although recovery remains uneven across segments.
"LTTS is pivoting towards "Engineering Intelligence" (EI) and AI-led solutions in preparation for its next 5-year "Lakshya" strategy, beginning in FY27. Management expects the financial performance to improve sequentially across both revenues and operating margins in the upcoming quarters of FY27," Axis Securities said while suggesting a target of Rs 3,970 on the stock.
JM Financial said LTTS reported strong numbers, improved deal wins and deal ramps supports outlook. European Auto recovery and Tech segment growth to be monitored, it said while maintain 'ADD' and a target of Rs 3,890.
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