Hold LTM; target of Rs 4240: Prabhudas Lilladher
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Prabhudas Lilladher downgraded LTM to hold with a target price of Rs 4240.
- ✓The firm reported Q2FY27 growth of 1.1% QoQ, beating estimates.
- ✓While Middle East issues hurt revenue, management expects better growth in H2FY27.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Prabhudas Lilladher's research report on LTM LTM reported Q2FY27 growth of 1.1% QoQ CC, ahead of our est. of 0.8%, while EBIT margin improved 10bps QoQ to 15.6%, broadly in line of our est. of 15.5%. Growth was largely broad-based, with FS and Production reporting strong sequential growth while Tech & Services declined sharply due to seasonality in top client and the impact of the ME business. However, management expects the vertical to normalize in Q3, supported by healthy demand and revenue conversion from recent wins.
The CBDT deal is also expected to ramp up gradually as hardware availability improves. The Middle East conflict, particularly the sharp revenue decline in Saudi Arabia, adversely impacted Q2 growth by an estimated 60-70bps; excluding this impact, management indicated sequential CC growth in band of 1.7-1.8%.
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