Agree results do not reflect - so far. How do margins and manufacturing costs compare with Tata Elxsi? Say TCS/LTI vs LTTS Vs Tata Elxsi?
Earlier I used to also think that patents etc not contributing to results. Then I digged deeper and see that the areas and technologies LTTS work in is way different than LTI/TCS. Not saying that LTI/TCS are anything less but what I feel that over long term they may turn out to be not comparable.
It is if we believe in the type of work that LTTS does and see growth, demand for that kind of work and market leadership from LTTS then it can probably chart the course which will be different than LTI/TCS.
I see two scenarios -
- One, where these niche areas remain niche - then growth is surely less than LTI/TCS but still decent growth.
- Two, where these niche areas become mainstream in due course of time - Chances of significantly higher growth than TCS/LTI.
As a humble investor, I do not know which Scenario would pan out.
Disc: Invested and hence biased. Not a buy/sell recommendation