Ltts Share Tumbles 7% Post Soft Q4; Is It Time To Sell Stock?

Shares of L&T Technology Services Ltd (LTTS) tumbled 7 per cent successful Friday's waste and acquisition aft nan IT patient reported 8.8 per cent driblet successful nett profit astatine Rs 311.10 crore contempt 17.5 per cent YoY emergence successful income astatine Rs 2,982.40 crore. Analysts said nan Trump tariff-related concerns are weighing much connected capex-intensive segments, which successful move is impacting ER&D vendors specified arsenic LTTS. They are mostly 'neutral' connected nan stock.

LTTS shares fell 7 per cent to deed a debased of Rs 4,165.90 today. MOFSL said LTTS missed its guidance connected gross connected macro headwinds. The Q4 capacity came successful beneath expectations contempt grounds ample woody full statement worth (TCV) wins, arsenic macro pressures led to ramp-up delays and deferment of woody signings. Some engagements were besides executed connected an finance ground to support strategical clients, impacting integrated gross realization, MOFSL said.

The IT patient witnessed a contraction successful EBIT separator to 13.2 per cent successful 4Q, dragged by nan full-quarter effect of Intelliswift (150 bps), gross deferrals successful high-margin segments, and one-off customer support investments. 

"While guidance reiterated its 16 per cent separator aspiration by Q4FY27–Q1FY28, nan miss raises concerns. A clear separator trajectory reversal is captious for immoderate sustained re-rating," MOFSL said while suggesting a target of Rs 4,400 connected nan stock.

LTTS said its ample woody wins stood astatine $210 cardinal against $200 cardinal successful Q3, driven by customer engagements focused connected some nan improvement of new-age products and platforms, arsenic good arsenic business translator initiatives. Its guidance aspires for EBIT separator astatine mid-16 per cent levels by 4QFY27 to 1QFY28. 

The IT awesome announced a last dividend of Rs 38 per share, pinch its dividend pay-out ratio coming successful astatine 46 per cent for nan twelvemonth and return connected equity (ROE)ay 22 per cent for nan year. 

Nuvama said Q4FY25 gross maturation and margins disappointed owed to a pullback successful spends by clients amid macro headwinds. The caller tariff-related uncertainty is weighing connected capex-intensive segments, which successful move is hurting ER&D vendors specified arsenic LTTS, it said.

"We are cutting FY26E/27E EPS by -5%/-0.5% arsenic we little our maturation and margins expectations, chiefly for FY26. We proceed to worth LTTS astatine 25x FY27E PE pinch a target of Rs 4,300 (earlier Rs 4,320); support ‘HOLD’," Nuvama said.

Post nan results, Antique Stock Broking reduced its FY26 and FY27 EPS estimates by 6 per cent each owed to a miss connected some gross and margin. 

"We proceed to support HOLD proposal pinch a target of Rs 4,850 (earlier Rs 5,480), arsenic we trim our guardant PE aggregate to 30 times (from 32 times) connected FY27E EPS," Antique said.