Question is are they into a niche where others will face difficulty to enter ?
If so how long ?
So do they have durable competitive moat ? That will protect the return ratios ( as growth can’t be an issue if they have competitive advantage )
I. Struggling to get the answer to this so requesting views …pls share
Can you elaborate on the pedigree of the CEO please? Anything special about him or his track record etc? Just wanted to know.
LTTS said in its corporate announcement that its promoter L&T plans to sell 40.34 lakh shares on June 4th and 6th that represent 3.88 per cent of the total paid up equity share capital.L&T will sell this through Offer for sell gateway to reduce its shareholding criteria to meet sebi norms. It will come down to 75% from 78.88%.
@arpitjain512 Came across this article - ABB to exit Power Grid Business; Focus on New Technologies , maybe ABB India might be another competitor post removing its power grid business and even Siemens announced a similar thing globally.
Industry 4.0 (robotics, automation and IoT) as shared by @duggu007 seems to be coming in a big way with enterprise solutions as well.
Disclosure - Not invested directly, but a friend has.
Any view on govt’s proposal to ruduce stake of promotors to make it max 65% from current 75% allowed?
This company has ~ 75% promotors stake.
Disc: Tracking
Still a proposal and will have to wait till it becomes a law.
govt has askes sebi to analyse ,and it is not a regulation as of now.
this may take time as sebi will look into the matter, from all angles.
LTTS will continue to do a selloff based on INR to USD, Economic Slowdown, EV taking time, and also the big runup that it has had. There are TOO MANY bulls on LTTS and LTI and they are pumping the stocks on TV, Forums, and particularly WA. Lots of people jumping in at high levels, and I hope they hold onto to their buys, but it is definitely not a stock to jump into in one shot but slowly.
Support levels are right below and I am waiting. Infy, TCS and other company results (Rev / EPS) starting to come out, and yet, we are seeing the great growth is not there in these biggies. Not saying taht it will affect LTTS and LTI and Mindtree (all three LT companies), but it will definitely come down based on the chart patterns that I have been looking at. I would start buying at 1550 or below.
KKP
I agree to your point. Just wanted to tell you that stock has respected the support of 200EMA (200 daily exponential moving average) which comes around 1601. In past I can see some whipsaws below 200EMA, but it will make sense to start buying at levels near 200EMA and if it breaks that then add more.
As you rightly said, this is not a stock for one shot but something to be bought in staggered manner.
Any clue as what is the overhangs on the stock - Rupee Appreciation or Promotor holding reduction? Or is something on the bussiness front the market has been trying to price in.
I tried to bid in the OFS but did not receive any allotment. So curious,with the sudden fall.
Q1 results https://www.bseindia.com/xml-data/corpfiling/AttachLive/ea13c27d-34fd-4285-8689-e6bdfbf92120.pdf
REVENUE IN INR
• Revenue of ₹13,475 million for the quarter; growth of 0.3% QoQ and 16.9% YoYREVENUE IN USD
• Revenue of $193.9 million for the quarter; growth of 1.4% QoQ and 14.8% YoY;
growth in constant currency at 1.3% QoQ and 15.2% YoY
PROFIT IN INR
• EBIT of ₹2,299 million for the quarter, growth of 4.2% QoQ and 35.2% YoY;
EBIT margin at 17.1 %
• Net Income of ₹2,039 million for the quarter, growth of 6.4% QoQ and 3.2% YoY;
Net margin at 15.1%
Disc: Only tracking. Not invested
Even though the commentary in the concall was strong, the company has revised its revenue guidance downwards from 14-16% to 12-14% due to slowdown in Telecom and Hi-tech division. Also, i could see their 50+ million (largest bucket) customer count reducing by 1. Any idea which customer is that?
The company did not acknowledge any slowdown and US-China trade war issues till Q4FY19 and now suddenly they are talking about slowdown in semi-conductor segment due to US-China trade war.
The company continues to win deals Q on Q but large deals (20 million+) are still far and few. Out of their total 258 active clients, they have only 9 in 20 million+ bucket.
Disc: Invested.
Regards,
Suhag
Despite emerging challenges in Telecom & Hi-tech vertical, LTTS is the strongest play in ER&D based on (1) Business resilience supported by vertical diversification and low client concentration (vs. peers), (2) Broad-based deal wins & deal pipeline, (3) Growth outperformance in largest vertical (Transportation) vs. peers and (4) Shift in business-mix to support margins.
And thus went the AGM of LTTS… !!
The event started with “L&T Anthem” played out on the giant electronic screens in the auditorium. Mr. A.M.Naik (Non-Executive Chairman) conducted the proceedings. The entire Board was seated on stage.
Mr. Naik started by stating that all the Directors are present for the AGM. He then read out a brief report on the last year’s performance, such as growth in revenues, profits and so on. He also mentioned that the company has a USD 1 billion target by FY2021. I found it a bit odd that a top corporate honcho like Mr. Naik doesn’t speak extempore, but reads out a bland pre-written write-up stuffed with usual platitudes. But wait… I am jumping the gun.
After the foreword, the customary resolutions such as adoption of annual accounts, declaration of dividend, re-appointment of directors etc. were passed. Then came what I was eagerly waiting for - the Question & Answer session.
Surprisingly, Mr. Naik already had a list, with names of people who would be asking questions! He began to call out the names one by one.
First was an old Marwari lady – an obvious fan of Chairmansahab, who thanked the Chairman for all his achievements and the glory he has brought to the company. The audience was entertained to a few shayaris dedicated to Mr. Naik, Dr. Panda and others.
Next, an old Parsi gentleman. He began by congratulating Mr. Naik for getting Padma Vibhushan. Then, he turned to ask some “ probing ” questions on the company’s financials. Why has the EPS increased? To this, the CFO replied that EPS has increased because the profits have increased. Okay. Then this gentleman pointed to an item in the P&L called “Legal & Professional Fees” and demanded to know - out of this, how much was Legal and how much was Professional? Wow, what a question! One more question, and Mr. Naik drove him away by saying don’t waste time, the CFO will meet you separately and answer all your questions.
Next. Another old gentleman walked up to the speaker’s podium. Once again, an obvious bhakt of Mr. Naik. Congratulations for getting the Padma Vibhushan and for expressing confidence in the company by investing in the company shares! (It is another matter that these shares are all ESOPs allotted by Mr. Naik to himself @ Rs.2 per share, making him the largest individual shareholder in LTTS)
Next.
Next.
Next.
One by one they were called, raised important issues and asked probing questions. Why don’t you split the stock to Re.1 per share? Next. The Annual report should have a Glossary & Abbreviations at the end. Next. Congratulations for the great CSR work the company is doing. Next. Why is the Corporate Office in Vadodara and not in Mumbai? Next. Renukaji (Ms. Renuka Ramnath, the sole lady Director on the Board, sitting on stage) is like Goddess Laxmi, may her presence shower us with lots of wealth! Next. L&T InfoTech AGM was at 11:30 in the morning and this one is at 3:30. What should we do in-between for four hours? Next. All this (pointing to the Annual Report) is okay but it is of last year. What about the current year? When are you declaring the first quarter results? (When this speaker told that Q1 results were already declared yesterday itself, he said ‘Sorry I did not see as I was busy “preparing” for this AGM’)
Then suddenly – and apparently having run through his full list - Mr. Naik called the AGM as over! All the business suits sitting on the stage got up and quickly walked away, perhaps having accrued their Sitting Fees and looking forward to their Gin & Tonic and a pleasant Saturday evening. No one had uttered a single word throughout the session. (Now I know why they call it “sitting” fees).
What about those like me, who came hoping to listen to an enlightening talk on the global slowdown, U.S. – China trade war and the future of technology? What about IoT, hybrid engines, solar drones, autonomous robots? What about digital factories, 5G, Artificial Intelligence and autonomous vehicles? Will someone talk about where the human – technology interface is heading?
Sir, please go to the ground floor, right hand side corner and use the coupon we gave you for a cup of tea. Thank you for attending.
Very disappointing…Their twitter handle works overtime to give a picture of futuristic company…There is a disconnect between public perception and reality?
I am afraid thats how most of the companies are. In this context, I had created a post in another thread. Not many responses though.
PS: I dont know anything about l&t technology. My post is not specific to this company. But a general one.
Shocking. If it was only Mr. Naik’s show then what is the need of the active management of LTTS. They should have been there at their home and not in the AGM.
There is no doubt that AM Naik has given his life at L&T and is responsible for many good things at L&T as a whole. However, off late he has become larger than life. I remember there were marshals called at L&T’s AGM last year when few shareholders asked some probing questions to Mr. Naik. That does not reflect well on a man of his stature.
Even though this is not a thread for L&T infotech, wanted to know if the same story was repeated there as well. Please share if you have any idea.
It was exactly the same outcome, as LTTS AGM was preceded by LTI.
I personally attended the AGM, to get 1st hand information, in detail, about the Future Pipe & headwinds (if any) from Mr Jalona & Mr Panda’s mouth themselves, but was taken by surprise completely, when Mr Naik, a SME from Construction Vertical, did not give a single chance to these top class brand Ambassadors,being the designated & talented leaders, ensuring the growth for both these Businesses, of parent L&T.
For me, it was a sheer disappointment.
