L&T Technology Services Limited (NSE:LTTS) shareholders might be concerned after seeing the share price drop 14% in the last quarter.
But that doesn’t change the reality that over twelve months the stock has done really well.
Looking at the full year, the company has easily bested an index fund by gaining 18%.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business.
One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During the last year L&T Technology Services grew its earnings per share (EPS) by 63%.
It’s fair to say that the share price gain of 18% did not keep pace with the EPS growth.
Therefore, it seems the market isn’t as excited about L&T Technology Services as it was before. This could be an opportunity.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that L&T Technology Services has improved its bottom line lately, but is it going to grow revenue?
If you’re interested, you could check this free report showing consensus revenue forecasts.
A Different Perspective
L&T Technology Services boasts a total shareholder return of 19% for the last year(that includes the dividends).
We regret to report that the share price is down 14% over ninety days.
It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it.
Before spending more time on L&T Technology Services it might be wise to click here to see if insiders have been buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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