LTM Ltd (LTM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coforge

Hexaware Tech.

Persistent Syste

Tech Mahindra

Infosys

LTM

L&T Technology

TCS

HCL Technologies

Wipro

Mphasis

Why is LTM Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.66%

Healthy long term growth as Net Sales has grown by an annual rate of 27.89% and Operating profit at 23.02%
The company is Net-Debt Free

The company has declared Positive results for the last 3 consecutive quarters

ROCE(HY) Highest at 28.84%
NET SALES(Q) Highest at Rs 11,608.00 cr
DPR(Y) Highest at 44.24%

With ROE of 22.5, it has a Fair valuation with a 5.5 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -14.53%, its profits have risen by 19.1% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 23.14%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.53% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to LTM should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is LTM for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LTM

-14.61%

-0.47

31.19%

Sensex

-3.74%

-0.27

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.89%

EBIT Growth (5y)

23.02%

EBIT to Interest (avg)

28.02

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

1.72

Tax Ratio

26.22%

Dividend Payout Ratio

44.24%

Pledged Shares

Institutional Holding

23.14%

ROCE (avg)

48.00%

ROE (avg)

23.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.49

EV to EBIT

17.31

EV to EBITDA

14.98

EV to Capital Employed

10.39

EV to Sales

2.71

PEG Ratio

1.24

Dividend Yield

0.49%

ROCE (Latest)

56.59%

ROE (Latest)

22.50%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

ROCE(HY)

Highest at 28.84%

NET SALES(Q)

Highest at Rs 11,608.00 cr

DPR(Y)

Highest at 44.24%

PBDIT(Q)

Highest at Rs 2,060.60 cr.

PBT LESS OI(Q)

At Rs 1,723.00 cr has Grown at 29.15%

PAT(Q)

Highest at Rs 1,466.30 cr.

EPS(Q)

Highest at Rs 49.54

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.70 times

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Here's what is working for LTM

Net Sales - Quarterly

Highest at Rs 11,608.00 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 2,060.60 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 1,723.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,723.00 cr has Grown at 29.15%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,466.30 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 49.54

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 44.24%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for LTM

Debtors Turnover Ratio- Half Yearly

Lowest at 5.70 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio