HSBC has maintained its hold rating on L&T Technology Services (LTTS) with a target price of ₹4,790, noting that the second quarter is likely to mark the bottom of the company’s growth cycle. The brokerage said that while the automotive segment may remain weak, other verticals are expected to drive growth, helping offset sector-specific headwinds.
LTTS has reiterated its guidance of double-digit constant currency growth for FY26 and expressed confidence that ongoing investments will help accelerate growth into the mid-teens over time. HSBC highlighted that LTTS continues to have the strongest engineering research and development (ER&D) capabilities among its coverage universe, but weaker near-term organic growth compared with peers keeps it at hold.
The brokerage said investors will be watching for signs of recovery in discretionary spending in key industries, with the company’s strong ER&D positioning providing long-term support for growth once sectoral conditions stabilise.
Disclaimer: The views and recommendations made in this article are those of HSBC. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
