Edelweiss has given a buy rating to L&T Technology Services with a target price of Rs 1826. The share price moved down by 3.42 per cent from its previous close of Rs 1439.20. The stock’s last traded price is Rs 1390.
L&T Technology Services Ltd., incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 14571.98 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1294.70 Crore, down -10.50 % from last quarter Sales of Rs 1446.60 Crore and down -3.92 % from last year same quarter Sales of Rs 1347.50 Crore Company has reported net profit after tax of Rs 118.00 Crore in latest quarter.

Investment Rationale
The brokerage said the uncertainty continues to mar the outlook for ER&D revenue growth, now further undermined by the covid-19 crisis. It believes unlike IT services wherein higher online activity has been a saviour of demand, ER&D business growth hinges on plant operations and transportation (aviation etc). While the numbers did miss estimates and a marginal cut in inescapable, the brokerage believes bounce-back will be sharper than management guidance, although lockdowns in case of a second wave of the virus remains a key risk.

Promoter/FII Holdings
Promoters held 74.6 per cent stake in the company as of March 31, 2020, while FIIs held 8.4 per cent, DIIs held 4.9 per cent and public and others 12.1 per cent.