L&T Tech shares see biggest single-day gain in five years post strong Q2 results — Details here

Shares of L&T Technology Services Ltd. gained nearly 15% on Wednesday, October 21, after the company's second quarter earnings beat estimates.This is its biggest single-day gain since July 15, 2021, when the stock had surged 18.9%.The company reported a constant currency revenue growth of 2.7% compared to estimates of 1% to 1.2%.Its earnings before interest taxes increased by 60 basis points to 16.3% sequentially and was also above estimates of 16%.L&T Tech's profit after tax increased 53.7% to ₹548.2 crore compared to ₹356.6 crore. The PAT included a one-time gain of its ₹165 crore SWC business disinvestment.For its continuing operations, its PAT is up 7.9%.This is the first time the company has given annualised revenue from engineering intelligence -led solutions, which stood at $120 million at the end of the September quarter. AI-related deals accounted for 50% of the second quarter's total contract value.The company said wage hike will be effective in the third quarter with an impact of 50 to 80 basis points.

Its margins are likely to remain in the mid-16^ range, even after wage hike. The company reiterated its aspiration of 13% to 15% compound annual growth rate over the next five years, with margins in the 16% to 17% range.The company's board of directors also approved an interim dividend of ₹20 per equity share of face value 2 each for the financial year 2027. It fixed October 27, 2026 as the record date for the same.After the results, brokerages such as IDBI Capital Markets, Equirus Securities and Anand Rathi have upgraded the stock to "buy".IDBI Capital Markets has upgraded the stock to "buy" from "hold" and has increased its price target to ₹4,170 from ₹3,625 earlier.Anand Rathi has also increased its price target to ₹4,336 on L&T Tech from ₹3,630 earlier and has upgraded the stock to "buy" from its earlier rating of "hold".

Anand Rathi's revised price target is the third highest on the street for L&T Tech.Equirus Securities has upgraded the stock to "buy" from its earlier rating of "add" and has raised its price target to ₹4,140 from ₹3,600 earlier.A total of 33 analysts have coverage on L&T Tech, of which, 16 have a "buy" rating, 12 say "hold", and five have a "sell" rating on the stock.Shares of L&T Technology Services are trading 10.3% higher on Wednesday after the upgrades at ₹3,982.1. The stock is still down 11% so far this year.Also Read: Stock Crash: Here's why eMudhra shares tanked 20% on Wednesday