L&T Technology Services hits new high; stock zooms 56% post Q3 results

L&T Technology Services (LTTS) has surged 18% to Rs 1,547, also its new high since listing on September 30, 2016 on BSE on back of heavy volumes.

Since January 18, 2018, post October-December quarter (Q3FY18) results, the stock soared 56% from Rs 989 as compared to 2.7% decline in the S&P BSE Sensex.

LTTS had reported sequential US dollar revenue growth of 8.3% at $ 151 million in October-December quarter (Q3FY18). On constant currency (CC) basis revenue growth during the quarter under review at 8.3% over the July-September (Q2FY18) quarter.

“LTTS’s growth will be driven by large client mining (T30-A3 strategy) with marquee base (48 of top-100 global ER&D as clients with large addressability) and strong deal momentum supplemented by S&M investments, vertical-wide strong deal wins (USD 50 million aerospace deal to ramp up from Q4, with a diversified vertical mix, and recovery in process industry vertical (12.7% of rev), following a prolonged slump,” analysts at HDFC Securities said in results review.

Strong pipeline in automotive and OTH segment expected to drive transportation vertical (30.9% of rev) growth, supplemented by aerospace deal. Industrial product vertical (21.8% of revenue) expected to pick up from Q4 and growth in Telecom & Hi-tech vertical (27.9% of rev) expected across sub-segments, it added.

At 02:58 PM; the stock was trading 16% higher at Rs 1,513 on BSE against 0.89% rise in the S&P BSE Sensex. A combined 331,337 shares changed hands on the counter on BSE and NSE so far.