L&T Technology Services Ltd Hits 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

On 20 Feb 2026, L&T Technology Services Ltd's share price touched an intraday low of Rs.3369, representing a 2.12% drop on the day and a 1.01% decline compared to the previous close. This new 52-week low comes after the stock has experienced four consecutive days of losses, accumulating a negative return of 3.5% over this period. The stock's current price is substantially below its 52-week high of Rs.5157.6, indicating a year-long downward trend.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. In contrast, the broader Sensex index has shown resilience, recovering sharply after an initial negative opening and closing at 82,810.56 points, up 0.38% on the day. The Sensex remains within 4.04% of its own 52-week high of 86,159.02, supported by gains in mega-cap stocks.

Relative Underperformance and Sector Comparison

Over the past year, L&T Technology Services Ltd has delivered a total return of -30.55%, significantly lagging behind the Sensex's positive 9.35% return. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. Within its sector, the stock underperformed by 1.11% on the day, highlighting relative weakness compared to its peers in Computers - Software & Consulting.

Financial Metrics and Valuation

The company’s recent financial results have been largely flat, with the December 2025 quarter showing no significant growth. The Return on Capital Employed (ROCE) for the half-year period stands at a low 26.56%, while the quarterly Earnings Per Share (EPS) has declined to Rs.28.55, marking the lowest level in recent periods. These figures contribute to the cautious sentiment surrounding the stock.

Despite these challenges, L&T Technology Services Ltd maintains a strong long-term fundamental profile. The average Return on Equity (ROE) over time is a robust 23.28%, reflecting efficient capital utilisation. Net sales have grown at an annualised rate of 16.59%, with operating profit increasing at 15.76% annually, underscoring steady business expansion over the longer term.

Valuation metrics indicate the stock is trading at a Price to Book Value ratio of 5.9, which is considered expensive relative to its own historical averages but remains in line with peer valuations. The company’s low average debt-to-equity ratio of zero further supports its financial stability.

Shareholding and Market Grade

The majority of shares are held by promoters, indicating concentrated ownership. The stock’s Mojo Score currently stands at 46.0, with a Mojo Grade of Sell, downgraded from Hold on 9 Feb 2026. The Market Cap Grade is rated 2, reflecting its mid-cap status within the Computers - Software & Consulting sector.

Summary of Recent Trends

The stock’s recent decline to Rs.3369 marks a continuation of a downward trajectory that has persisted over the past year. While the broader market and sector indices have shown resilience and growth, L&T Technology Services Ltd has struggled to keep pace, reflected in its underperformance relative to the Sensex and sector benchmarks.

Its financial indicators reveal a mixed picture: steady long-term growth and strong return metrics contrast with subdued recent earnings and valuation concerns. The stock’s trading below all major moving averages further emphasises the current bearish sentiment among market participants.

Overall, the new 52-week low highlights the challenges faced by L&T Technology Services Ltd in the current market environment, despite its underlying business strengths and promoter backing.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →