The L & T service stock price fell 7 percent at the beginning of trading on January 19 – a day after the company reported December quarter income.

L & T technology services have reported an increase in net profit of 8 percent to Rs 248.8 Crore for the quarter ended in December 202 compared to RS 230 Crore in the last quarter.

Rupee’s revenue rose 5 percent at RS 1,687.5 Crore from Rs 1,607.7 Crore, Qoq, while the dollar revenue reached $ 225.1 million against $ 217.4 million.

His income before interest and tax (EBIT) rose 6 percent at Rs 314.4 Crore from Rs 296.4 Crore and the margin rose to 18.6 percent as against 18.4 percent, Qoq.

This is what the broker must say about the stock and the company posts the December Quarter:

Citi.

Research House Citi has maintained a ‘selling’ call on L & T technology services with targets at Rs 4,430 with soft Q3 with income under expectations and margins in front.

Growth is mostly affected because of the lower number of working days. Friction tends to be stable from Q4 according to management. Citi has revised EPS FY22-FY24 slightly 0-2 percent.

CLSA.

CLSA has maintained a ‘outperforming’ rating in stock with a target at Rs 6,150 after stable income growth, increased execution and healthy prospects.

Comments about the prospect of healthy medium-term growth. Rich assessment and can still increase with upcycle requests.

Sharekhan.

L & T technology services are well placed to gain market share among global competitors because they become a choice of engineering partners between clients, strong customer-centric approaches and full service models.

We believe the company is on track to achieve the aspirations of its income growth with good profitability. We expect revenue and revenue of USD LTTS to post CAGR of 19 percent and 25 percent of FY2022-24. We maintain ‘buy’ in stock with the RS 6,350 revised price target.

Oswal Maleral.

Driving digitalization spent accelerated at ER & D and the company must benefit from it because: (1) strong capabilities, (2) the existence of multi-vertical, and (3) share of solid wallet.

We hope the company provides strong income growth over the years to come and maintain it as our top choice in TIER-II IT service.

Our target price Rs 6,130 per share implies 43x FY24 EPS. We anticipate better industrial expenses compared to the previous five years. We maintain our ‘buy’ rating.

At 9:17 a.m., L & T technology service quoted at Rs 5,070.00, down RS 351.45, or 6.48 percent, in BSE.