Sinewave Securities

According to Gartner estimates, IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022. As of FY21, the IT industry employed 4.5 million people. This push towards cloud services has boosted hyper-scale data center investments, with global investments estimated to exceed ~US$ 200 billion annually by 2025.  Broad story: Dotcom bubble in 2000-Stretched valuations and overhyped earnings. 2002-Packaged Software—IBM and SAP growth—lead to rise of TCS, Infy, Wipro, HCL 2010-Engineering Services—Tata Elxi, LTTS and others 2015 onwards Digitalization = Shifting from legacy services (2%Cagr) to digital services(Growing 21% CAGR) 2018 onwards : SaaS(Software as a Service)—Capex one time becomes OPEX—Retained earnings + Pricing power (as less competition) Value Chain Broad overview of popular companies : Happiest Minds Insights=Software as a Service which is OPEX for customer not CAPEX putting up certainty ...

 LTTS is an engineering services provider incorporated in 2012, offers engineering, research and development (ER&D) and digitalization solutions to companies in the areas such as Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices and Plant Engineering. The global ER&D market is expected to grow to $1.9 trillion in the next three years from the current ~$1.4 trillion on the back of R&D investment by global organizations and the increasing sophistication of the ER&D services industry Revenue Split - Segment Wise (operating revenue) in FY 20 Transportation - 35% The global customers of LTTS in this business vertical include top OEMs (original equipment manufacturers) and Tier 1 suppliers across the Automotive, Trucks & Off-Highway Vehicles and Aerospace sector. LTTS is actively involved in the future of mobility through its solutions for electrical vehicles (EV), advanced driver assistance system (ADAS), and autonomous drive (AD) . The C...