L&T Technology Services shares in focus after signing €50 million deal with European auto manufacturer

L&T Technology Services (LTTS) shares will be in focus on Wednesday following the announcement of a €50 million ($54 million or around Rs 460 crore) deal with a European automotive original equipment manufacturer (OEM).The tenure of the deal or the name of the company was not disclosed.The Larsen & Toubro (L&T) subsidiary said it would set up a new development centre leveraging software-defined vehicle (SDV) and advanced driver-assistance system (ADAS) capabilities for the client.

The deal was announced just two months after LTTS secured an $80 million multi-year deal with a US-based industrial products manufacturer.“The latest large deal engagement focuses on the development and operation of next-generation software platforms tailored to both current and upcoming vehicle models. The comprehensive scope of this transformational deal includes the establishment of a development centre, which will play a critical role as part of the client’s global right shoring strategy,” the company said in a statement.



Also Read: Stocks in news: Tata Consumer, Swiggy, Godavari Power, Tata Motors, Indian BankThe client’s advanced technology stack includes a unified architecture, a proprietary operating system, and an automotive cloud, it added.“We are thrilled to collaborate with one of the most influential automotive leaders in Europe,” said Amit Chadha, chief executive & managing director at LTTS.Currently, the company’s electric vehicle (EV) lab in Bengaluru serves as a hub for the development and testing of advanced EV technologies.

The European auto manufacturer is also developing vehicle features such as standardised infotainment platforms, software solutions integrating powertrains, chassis and charging infrastructure, and an expansive digital ecosystem delivering enhanced in-car digital services.Also Read: Senco Gold to Rajesh Exports: 9 stocks that could skyrocket over 100%LTTS shares target priceAs per Trendlyne data, the average target price of the stock is Rs 5,147, which shows an upside of 13% from the current market prices. The consensus recommendation from 28 analysts for the stock is a 'Hold'.

LTTS shares performanceOn Tuesday, LTTS shares closed at Rs 4,565.8 on the BSE, up 1.4%, while the benchmark Sensex declined 1.

8%. The stock has dropped 3% year-to-date and 18% in the past one year. The company’s market capitalization stands at Rs 48,343 crore.

Also Read: Bitcoin and the psychology of wealth: Robert Kiyosaki on why most people stay poor(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times).