L&T Group stock to buy now for an upside potential of more than 30%; Do you own it?

The shares of L&T Group, a prominent global provider of pure-play Engineering Research and Development (ER&D) services offering consultancy, design, development, and testing services throughout the product and process development lifecycle, rose around 5 percent after global brokerage Macquarie upgraded the stock from “Underperform” to “Outperform.”

Share Price Movement 

The shares of L&T technology Services Ltd, with a total market capitalization of Rs 54,182.88 Crores on Friday, reached an Intraday high of Rs 5,159 per share gaining around 4.72 percent. As of 2:00 pm, the shares slightly retreated and were trading at Rs 5,104.5 per share which was 3.85 percent higher than the previous closing price of Rs 4,915.4. 

The shares of L&T technology Services Ltd, generated a three year return of 16 percent, and a return of 192 percent in the past five years. 

What Happened 

Global brokerage Macquarie upgraded L&T Technology Services Ltd (LTTS) from “Underperform” to “Outperform,” raising the target price to Rs 6,530 per share, implying a potential upside of 33% from the previous closing price of Rs 4,915.4.

While Macquarie expects LTTS to experience below-peer growth, it sees value in the stock given its steep discount when compared to other similar-sized peers.

The brokerage also anticipates faster growth for LTTS, bolstered by the $110 million acquisition of Intelliswift Software Inc. which was completed in January 2025. This acquisition is expected to strengthen LTTS’s capabilities in software product development, platform engineering, and AI, expanding its service offerings to global clients.

Additionally, Macquarie predicts a recovery in EBIT margins to the 16-17% range, up from an estimated 15.5% in FY25, which could serve as a key growth driver.

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Financials

The company’s revenue from operations increased by 9.5 percent from Rs 2,422 Crores in Q3FY24 to Rs 2,653 Crores in Q3FY25. Their Net Profits however declined by 5 percent from Rs 337 Crores to Rs 320 Crores over the same period. 

Recent Developments

In January 2025, LTTS  was awarded a multiyear, $80 million deal with a US-based manufacturer of industrial products and solutions. This strategic partnership will accelerate the client’s digital transformation through the integration of advanced technologies, including connected products and the digital thread. 

Management Guidance

L&T Technology Services (LTTS) is aiming for $3 billion in revenue in the short to medium term, with plans to scale its key divisions; mobility, sustainability, and technology to $1 billion each. The long-term goal is to grow into a $5 billion company, positioning itself as the largest engineering and research development (E&RD) firm globally.

CEO Amit Chadha highlighted a focus on securing large deals, noting an $80 million deal closed recently and a $50 million deal in the previous quarter, which was the highest in terms of deal wins. He expressed optimism that CY25 will outperform CY24.

About L&T Technology Services Ltd

L&T Technology Services Limited  is a prominent global provider specializing in Engineering Research and Development services. LTTS’s expertise encompasses software and digital engineering, embedded systems, engineering analytics, and plant engineering solutions with operations in over 25 countries. 

Written By Adhvaitha Nayani

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