Home / Markets / News / Valuation concerns limit upsides for L&T Tech and Tata Elxsi stocks

Valuation concerns limit upsides for L&T Tech and Tata Elxsi stocks

Cyient also disappointed on the revenue front, with 8 per cent year-on-year (YoY) organic growth

Premium

The near-term triggers for the stocks in the ER&D space are the Q2 performance and the growth guidance/outlook for 2022-23 (FY23)

Ram Prasad Sahu

4 min read Last Updated : Oct 19 2022 | 10:41 PM IST

The stock of L&T Technology Services (LTTS) was among the top losers on the BSE 100 Index, shedding 4.9 per cent in trade on Wednesday. While the software major, which offers engineering, research and development (ER&D) services to companies, posted a healthy July-September quarter (second quarter, or Q2) performance, worries of a potential slowdown and punchy valuations weighed on the stock price. At the current price, the stock is trading at 29x its 2023-24 (FY24) earnings estimates.

Although HDFC Securities expects the company to log an earnings per share growth of 19 per cent over 2021-22 through 2024-25, it believes

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in