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L&T Technology may trail peers in near term despite improved FY21 guidance

While deal pipeline remains strong, Q3 growth, valuations could impact stock

Larsen and Toubro
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The key uncertainty for the stock however is the client mix which is tilted towards discretionary sectors and spends of clients.

Ram Prasad Sahu Mumbai
The L&T Technology Services stock has been trading flat since its results announcement last week. This is despite the improved guidance for the financial year, and sequential improvement in the September quarter.

The company has guided for a revenue decline of 7-8 per cent for FY21, which is a 200-basis-point (bps) improvement compared to the earlier guidance of a 9-10 per cent decline. 

The management commentary suggests that the worst is over for the company, and growth should improve hereon. Following a 12.7 per cent revenue contraction in the June quarter led by a decline in most verticals, growth has improved by

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First Published: Oct 27 2020 | 7:34 PM IST

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