Larsen and Toubro Technology Services Ltd: Analysts Recommend Buy, Target Price Set at Rs 4350

Larsen and Toubro Technology Services Ltd Poised for Recovery in FY27E

A recent report by Choice Institutional Equities highlights the strong prospects for Larsen and Toubro Technology Services Ltd (LTTS) in the upcoming financial year (FY27E). The company's sustained large-deal momentum, improving traction across core segments, and early stabilization in Mobility and Tech have set the stage for a recovery.

LTTS's Ongoing Portfolio Recalibration Drives Improved Revenue Quality

LTTS has been actively recalibrating its portfolio by exiting low-margin and non-strategic businesses. This strategic move is driving improved revenue quality and margin expansion for the company. Furthermore, the adoption of Artificial Intelligence (AI) in delivery and the scaling of high-value engagements are expected to provide additional upside.

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Growth and Margin Recovery

While LTTS's near-term growth may remain modest due to portfolio pruning, the company's strong deal wins and ramp-ups, along with improving execution, provide a credible path to recovery visibility. Specifically, the report forecasts a mid-16% EBITM by Q4FY27E.

Outlook and Recommendations

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Choice Institutional Equities maintains a BUY rating for LTTS, supported by the company's industry-leading growth and margin recovery. For FY28E, the report forecasts earnings per share (EPS) of INR 174.2. With a 25x price-to-earnings (PE) multiple, the target price (TP) for LTTS is set at INR 4,350.