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LTTS: Recent acquisition of SWC overhang dents investor sentiment

Near-term growth concerns, too, weighed on the stock

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The rationale for the acquisition was to enhance the LTTS’s capabilities in the 5G network architecture and conceptualisation

Ram Prasad Sahu
The stock of the country’s largest engineering research and development (ER&D) services player, L&T Technology Services (LTTS), has declined 15 per cent over the past month. In addition to growth concerns for the ER&D space, a key overhang for the stock was the recent acquisition of Smart World and Communication (SWC), a business unit of Larsen and Toubro (L&T).

SWC offers solutions in areas of end-to-end communications, city surveillance, and intelligent traffic management systems for the government and enterprises. The rationale for the acquisition was enhancing LTTS’s capabilities in the 5G network architecture and conceptualisation.

While the valuation

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First Published: Jan 18 2023 | 6:49 PM IST

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