Rs 17/Share Dividend: Buy Mid Cap IT Stock For 23.5% Potential Gain: Motilal Oswal

Motilal Oswal has recommended investors to buy large cap IT Software sector stock, L&T Technology Services (LTTS) with target price of Rs 5210 apiece. If you buy L&T Technology Services shares at current market price of Rs 4217.35 per share, you can get potential 23.5% return. The Board of Directors of LTTS have declared an Interim Dividend of Rs. 17/- per equity share on October 17, 2023. Check details below:

L&T Technology Services Stock Performance & Return: Current market price of L&T Technology Services share on BSE is Rs 4217.35 per share with intraday fall of 2.17%. Its 52-week high price is Rs 4859.75 per share and 52-week low price is Rs 3218.00 per share, respectively. The company's market capitalisation is Rs 44,581.46 crore. L&T Technology Services shares fell 10% in last 1-week and 11% in last 2-weeks. However, L&T Technology Services stock witnessed a rally of 25% in last 6-months, soared 13% YTD, gained 20% in last 1-year, and offered a rally of 143% in last 3-years. In last 2-years, LTTS shares slipped nearly 7%.

L&T Technology Results: In the September quarter, LTTS announced its net profit surged 5% to Rs 315.4 crore as against Rs 300 crore in the same quarter last fiscal. Its revenue soared 4.6% YoY to Rs 2,386.5 crore in Q2FY24 as compared to Rs 2,281.7 crore in Q2FY23. The management reduced its 20% YoY revenue growth prediction for FY24 to 17.5-18.5%. L&T Technology's revenue soared by 2.9% sequentially to $288.1 million in dollar terms. It surged sequentially by 3.2% in constant currency terms. Seven projects totalling USD 10 million or more TCV were won by LTTS during the quarter across all industrial categories, including six deals worth over USD 15 million apiece. LTTS has resulted in a 23,880 employee base as of the end of Q2FY24.

L&T Technology Services Dividend: According to the BSE filing issued on Oct 17, 2023, "The Board of Directors have also declared an Interim Dividend of Rs. 17/- per equity share. The Interim Dividend shall be paid to equity shareholders of the Company whose names will appear in the Register of Members or in the records of the Depositories as Beneficial Owners of Equity shares as on Friday, October 27, 2023, which is the Record Date fixed for the aforesaid purpose."

L&T Technology Services Valuation: According to Motilal Oswal's brokerage report dated October 17, 2023, "Digitization is boosting spending in ER&D, and LTTS should benefit due to its strong capabilities, multi-vertical presence, and solid wallet share. We expect the company to deliver strong revenue growth over the coming years. Our TP of INR5,210 implies 35x FY25E EPS. We expect industry spending to improve vs. the preceding five years. We retain our BUY rating on the stock."