High ROE and high ROCE multibagger stock: This IT company wins USD 50 million Hi-Tech deal and declares stellar results!
The stock is up by 32 per cent in just 1 year and over 200 per cent in 3 years.
L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a leading global pure-play engineering services company, announced today that it has secured a USD 50 million contract with a global technology company, to enable new opportunities for digital media platforms.
The latest agreement carries a 5-year tenure and is tailored to significantly enhance the flagship suite of products including the customer’s cloud-native portfolio and drive new levels of automation and optimization for customer experience functions.
LTTS will also be streamlining the workflow processes and reducing the product development cycle. A key tenet of this collaboration is to leverage LTTS’ cutting-edge innovations in machine learning and artificial intelligence while enabling collaboration on a range of new next-generation experiences.
Additionally, the company declared its Quarterly Results, the net sales increased by 14.71 per cent to Rs 2,301 crore, operating profit increased by 11.03 per cent to Rs 453 crore and net profit increased by 13.04 per cent to Rs 312 crore in Q1FY24 over Q1FY23. The net sales increased by 22 per cent to Rs 8,014 crore and net profit increased by 22.17 per cent to Rs 1,174 crore in FY23 over FY22. The EPS for FY23 stood at Rs 110.77.
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Earlier, the company partnered with Palo Alto Networks, the global cybersecurity leader, to provide enterprises in diverse verticals with security services and solutions in 5G and Operations Technology (OT) areas. Under the agreement, LTTS will become a Palo Alto Networks Managed Security Services Partner (MSSP), delivering a suite of security services to end customers in industrial verticals.
On Wednesday, shares of LTTS surged 1.98 per cent to Rs 4,144.15 per share with an intraday high of Rs 4,209.95 and an intraday low of Rs 4,030.85 per share. The shares of the company have a ROE of 26 per cent and a ROCE of 32.80 per cent. The shares of the company saw a spurt in volume by more than 2.33 times on BSE.
The company has been maintaining a healthy dividend payout of 38 per cent. The stock is up by 32 per cent in just 1 year and over 200 per cent in 3 years. Investors should keep an eye on this IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.