LTTS, a leading ER&D player, has established a strong presence in key verticals such as Mobility, Sustainability, and Technology. With a portfolio of niche subsegments and services, LTTS stands out among its competitors. The company has achieved notable growth through the development of cutting-edge capabilities and strategic acquisitions.
LTTS aims to reach a $2 billion revenue run rate in the medium term, with a long-term target of $1 billion in each vertical. The company boasts a solid client base and a track record of securing large deals. Despite macro-economic challenges, LTTS is well-positioned to capitalize on the growing demand in the ER&D space and emerge as a leader in the industry.
Our coverage initiates with a Buy rating and a target price of ₹5,251 (32x PE FY27E EPS). However, there are risks to consider, such as the impact of acquisitions on financials, large deals not meeting expectations, technology disruptions, and talent acquisition and retention issues.
