Nomura has maintained its reduce rating on L&T Technology Services (L&T Tech), lowering the target price to Rs 4,840, indicating a potential 9.11% downside from the current market price of Rs 5,325.00. The company’s Q2FY25 performance was described as a mixed bag, with marginally better-than-expected revenues but a miss on margins.
L&T Tech has retained its FY25F guidance of 8-10% organic growth, but Nomura noted that achieving the 16% EBIT margin target for FY25F appears challenging due to front-loaded investments. The brokerage has also reduced its FY25-27F EPS estimates by 2-5%.
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