Buy Larsen and Toubro target of Rs 1700: Sharekhan
Sharekhan’s research report on Larsen and Toubro
L&T’s weak order inflows for YTDQ3FY2020 may lead to downward revision in management’s order inflow guidance of 10-12% for FY2020. However, strong order book should ensure healthy execution for FY2020-FY2021. Maharashtra’s CM clarification on stoppage on work on projects awarded by the previous government sends positive signal about continued thrust on infrastructure for the state. We expect the government’s thrust on infrastructure investment to remain and expect revival in project tendering as early as Q4FY2020.
We maintain our Buy rating on Larsen and Toubro (L&T) owing to attractive valuation post the recent correction. Our revised PT of Rs. 1,700 factors lower valuation multiple for the standalone business due to near-term challenges in the sector.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India’s leading expert on wealth building, has created a strategy which makes it possible… in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.