Motilal Oswal Initiates Coverage of LTM with a Buy Rating, Target Price of Rs 5400

Motilal Oswal Maintains BUY on LTM with Target Price of INR5,400

LTM, a prominent company, reported revenue of USD1.2 billion in 4QFY26, marking a 1.2% quarter-over-quarter (QoQ) growth in constant currency (CC). This growth fell short of Motilal Oswal's estimate of 1.5% QoQ CC increase.

The company's earnings before interest and taxes (EBIT) margin stood at 15.1%, aligning with Motilal Oswal's estimate of 15.2%. Adjusted profit after tax (PAT) came in at INR13.4 billion, a decline of 4.3% QoQ but an increase of 18.8% year-over-year (YoY). In INR terms, revenue, EBIT, and adj. PAT grew 11.3%, 18.2%, and 16.9% YoY in FY26, respectively.

Read also: Reliance Industries Nears Green Ammonia Supply Deals with International Partners

Looking ahead to 1QFY27, Motilal Oswal expects revenue, EBIT, and adj. PAT to grow 17.2%, 27.9%, and 20% YoY, respectively. In FY26, free cash flow constituted 78% of net profit, and the return on equity (RoE) came in at 21.3%, down from 23.3% in FY25, 24.4% in FY24, and 26.1% in FY23.

Motilal Oswal maintains its BUY recommendation on LTM with a target price of INR5,400, valuing the company at 23x its estimated earnings per share (EPS) for FY28. This implies a potential upside of approximately 19%. The research firm has cut its estimates for FY27 and FY28 by 2-3% and reaffirms its BUY recommendation.