ET Intelligence Group: Investors may skip the initial public offering (IPO) of L&T Technology Services. The offer price makes its valuation expensive when compared with peers.Investors may , however, consider buying the company's stock on dips after listing due to its niche focus on engineering design and research and strong parentage in the form of India's largest infrastructure company, Larsen & Toubro (L&T). The parent's stake will fall to 89.8% in L&T Technology from current 100% after the listing.With over 9,400 employees across 12 global delivery centres, the company provides engineering, re search and development services in the fields of manufacturing, technology, and process engineering. In addition, the asking market capitalisation of L&T Technology services is 1.7 times that of Cyient despite having similar revenue base. Cyient earns nearly 68% of revenue from ERD with a margin of 13%.

Source: Economic Times September 12, 2016 03:56 UTC