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Larsen and Toubro
Margins under pressure
Posted by :
vkk43Tracked by: 1 Boarder
But share has already fallen today to 825/-, even when there was a rally at close....
In reply to:
Margins under pressure
Posted by :
vtycoon
Larsen & Toubro has posted gross sales of Rs.7,777 crores for the quarter ending September 2008, registering a growth of 40% over the corresponding quarter of previous year. Total income for the quarter grew to Rs.7,842 crores (Rs.5.523 crores for quarter ending Sept. 07) registering a growth of about 42%. This is more than expectations, as 35% growth in topline on an annualized basis is being projected by the analysts for the company.
However, disappointment came from pressure on margins, which has resulted into a lower growth at operating profit and net profit levels. EBIT for the quarter is at Rs.760 crores against Rs.561 crores of the corresponding quarter of previous year, recording a growth of 35.50%. PAT rose to Rs.460 crores (Rs.348 crores) which grew by 32%. Interest costs increased to Rs.69 crores against Rs.13.24 crores for Sept. 07 quarter and Rs.38.24 crores for June 08 quarter.
Inspite of global slowdown, the company secured fresh orders of Rs.12,453 crores during the quarter, which recorded a y-o-y growth of 74%. Of this, engineering & construction orders are of Rs.10,434 crores, registering a growth of 90%, with share of international orders at 22%. As at 30-09-08, this division had an order book of Rs.60,931 crores with share of international orders being 17%.
EPS for first half of the company, on expanded equity base of Rs.117 crores, is at Rs.16.50. Generally, September quarter of the company is always lean while March quarter is robust. On full year base, FY 09 EPS, should be close to Rs.48.
Post result announcements, the share price of the company fell by about 10% to Rs.900. On expected FY 09 earnings, share is ruling at a PE of less than 20. The company is confident of posting a growth of about 30% in topline and bottomline for FY 09 and FY 10, which looks possible, considering its order book and improvement in its margin from 10.60% to 11% in its engineering and construction division, from which 80% of the company’s turnover comes.
One may not be able to catch the bottom for the stock, but those who have 12 month horizon, can contemplate buying at Rs.900 levels and those who are holding it are advised to remain invested. 
Good stock to buy
Posted by : vkk43Tracked by: 0 Boarder
Thanks for your views. Let us keep a watch on this share for a few days before entering right now. With rising interest rates, lack of fresh orders, sensex going down by 50%, it cannot command such a high PE now for sometime....
In reply to:
Good stock to buy
Posted by : KARUNAS
Dear,
Even the current rates are quite attractive and may be good for buy in small lots for long term investment.
Good stock to buy
Posted by : KARUNASTracked by: 0 Boarder
Dear,
Even the current rates are quite attractive and may be good for buy in small lots for long term investment....
In reply to:
Good stock to buy
Posted by : vkk43
Let us wait for that rate for entering into this stock.
Margins under pressure
Posted by : vtycoonTracked by: 1 Boarder
Larsen & Toubro has posted gross sales of Rs.7,777 crores for the quarter ending September 2008, registering a growth of 40% over the corresponding quarter of previous year. Total income for the quarter grew to Rs.7,842 crores (Rs.5.523 crores for quarter ending Sept. 07) registering a growth of about 42%. This is more than expectations, as 35% growth in topline on an annualized basis is being projected by the analysts for the company.
However, disappointment came from pressure on margins, which has resulted into a lower growth at operating profit and net profit levels. EBIT for the quarter is at Rs.760 crores against Rs.561 crores of the corresponding quarter of previous year, recording a growth of 35.50%. PAT rose to Rs.460 crores (Rs.348 crores) which grew by 32%. Interest costs increased to Rs.69 crores against Rs.13.24 crores for Sept. 07 quarter and Rs.38.24 crores for June 08 quarter.
Inspite of global slowdown, the company secured fresh orders of Rs.12,453 crores during the quarter, which recorded a y-o-y growth of 74%. Of this, engineering & construction orders are of Rs.10,434 crores, registering a growth of 90%, with share of international orders at 22%. As at 30-09-08, this division had an order book of Rs.60,931 crores with share of international orders being 17%.
EPS for first half of the company, on expanded equity base of Rs.117 crores, is at Rs.16.50. Generally, September quarter of the company is always lean while March quarter is robust. On full year base, FY 09 EPS, should be close to Rs.48.
Post result announcements, the share price of the company fell by about 10% to Rs.900. On expected FY 09 earnings, share is ruling at a PE of less than 20. The company is confident of posting a growth of about 30% in topline and bottomline for FY 09 and FY 10, which looks possible, considering its order book and improvement in its margin from 10.60% to 11% in its engineering and construction division, from which 80% of the company’s turnover comes.
One may not be able to catch the bottom for the stock, but those who have 12 month horizon, can contemplate buying at Rs.900 levels and those who are holding it are advised to remain invested....
Brokers bullish on L&T, Zee Ent
Posted by :
14all..all41Tracked by: 0 Boarder
Larsen & Toubro Limited has informed the Exchange vide its letter dated October 15, 2008 that "The Company has allotted 113338 (One Lakh Thirteen Thousand Three Hundred Thirty Eight) shares today to those grantees who had exercised their options under the Company`s Employee Stock Ownership/ Option Schemes. The said shares will rank pari-passu with the existing shares of the Company in all respects"....
In reply to:
Brokers bullish on L&T, Zee Ent
Posted by : tunga
It has been beaten so badly most of the small investors who had hopes on long tem gain are more than knee deep of water. I think to come out of this situation may require plenty of time. Those who purchased shares above Rs 3000 are very badly hit by this situation. Since year 2008 January it is some how very bad and hope coming days will be better. There is no other way than hoping to have good days soon.
Brokers bullish on L&T, Zee Ent
Posted by : tungaTracked by: 0 Boarder
It has been beaten so badly most of the small investors who had hopes on long tem gain are more than knee deep of water. I think to come out of this situation may require plenty of time. Those who purchased shares above Rs 3000 are very badly hit by this situation. Since year 2008 January it is some how very bad and hope coming days will be better. There is no other way than hoping to have good days soon....
In reply to:
Brokers bullish on L&T, Zee Ent
Posted by : srilaxmi
L&T has beaten badly in the current scenario.It will bounce back in coming weeks with simultaneous profit booking.
Unless other wise FII partcipate in this counter , the stock will not reach the previous high bench mark of 4600..
We have to wat for three years to see the mile stone again
High Risk, High Returns: Myth or Fact?
Posted by : panasonicTracked by: 0 Boarder
The stock markets are risky business. At least that’s the line most people who didn’t park their money in Dalal Street have maintained. But on the flip side, the argument is ‘no pain, no gain’… ‘no risk, no returns’. It’s an age-old dilemma... Damned if you do and damned if you don’t.
Take the case of Harsh . He’s an IT professional. He, like millions, invested in the stock market consistently during the bull-run. Over the last two years, he parked Rs 24 lacs in it. Today his portfolio has lost half its value. And he’s cursing his luck.
Harsh took higher risks in the hope of higher returns. Was he wrong?
`Quite`, says Financial Trainer Bharat Patel. "You may expect higher risks for higher returns, but that`s not always true. To get better returns, sometimes you need to reduce risk – not increase it."
How do you do that? Here`s an easy approach:
Keep the money you require in the short term (i.e. less than 3 years) in debt instruments.
And invest the money you require in the long term (i.e. like 7 years or more) in equity.
But resisting a ride on the crest of the stock market is tough. Especially when it soars. Blocking out exclamations of joy from those who see the value of their portfolios rise with the Sensex isn’t easy. The trouble only begins when markets do a U-turn and a tailspin all at once. Investors break into a frenzy, and ultimately, despair.
"If you have a long term view, why do you track the markets on an hourly basis?" asks Bharat Patel. True. An exercise in futility for all you do is die a million deaths – without hope of nirvana.
Then again, from another perspective, the markets going down are good for young investors. After all you have the opportunity to invest for the long term, getting stocks that you wouldn’t get – at unimaginable prices.
Indeed, with a long term vision, investing in a bearish market isn`t a risk, it`s an opportunity. Trading is risky, but not investing. As Warren Buffet says, "If you know what you are doing, there is no risk".
Think about it this way. Not taking a risk is also a risk. For one, the money that you keep under your pillow would erode all its value with rising inflation.
The idea then is to manage risk. Here`s how:
Study your portfolio from time to time, say every six months. And then identify your risks. Your risks will typically change over a period of time with changes in interest rates and inflation. Your default risk also changes when the company you’ve invested money in, goes bankrupt.
Set your goals… the crucial ones like retirement and the not-so-crucial ones like that Tag Heur watch you wanted to indulge in. That way, you’ll see how you can best reduce your risk.
Keep a balanced portfolio. Spread your risks across different asset classes. You should have money in a savings bank account, PPF, Fixed Deposits, Gold, Real Estate and Equity. Ensure you’ve allocated 50-60% in equity with a long term vision and the rest in other asset classes.
Remember! You can’t avoid risk. At best, it can be managed......
Margins healthy, H1 FY09 order book growth at 46%: L&T
Posted by : MMB MessengerTracked by: 0 Boarder
YM Deosthalee expects overall margins to remain stable for the year. "We had given a guidance of 30% increase in new order inflow for the current year and are already at 46% in the first half of the year." JP Naik, its executive director, said the company’s order inflow has been growing at 30%. "It went up to 46% in the first half of this year."...
Brokers bullish on L&T, Zee Ent
Posted by : srilaxmiTracked by: 0 Boarder
L&T has beaten badly in the current scenario.It will bounce back in coming weeks with simultaneous profit booking.
Unless other wise FII partcipate in this counter , the stock will not reach the previous high bench mark of 4600..
We have to wat for three years to see the mile stone again...
In reply to:
Brokers bullish on L&T, Zee Ent
Posted by :
New Chanakya
This so called order book of L&T may remain only order book in recession. They may continue to carry on with that order book. Better to sell now.
Buy Larsen and Toubro, target of Rs 1385: Merrill Lynch
Posted by : stiffTracked by: 0 Boarder
L & T is the buy opportunity right now
it may test 1250 soon & 2000 in 2yrs ...
In reply to:
Buy Larsen and Toubro, target of Rs 1385: Merrill Lynch
Posted by : MMB Messenger
Merrill Lynch has maintained its buy rating on Larsen and Toubro (L&T) with a target of Rs 1385, reports CNBC-TV18.
Brokers bullish on L&T, Zee Ent
Posted by : New ChanakyaTracked by: 0 Boarder
This so called order book of L&T may remain only order book in recession. They may continue to carry on with that order book. Better to sell now....
In reply to:
Brokers bullish on L&T, Zee Ent
Posted by : ajaydanait
No way ... I think it has taken enough beating. LT is a fundametally strong company with large order books for the next 5 years. Stay put and buy on every fall.
Buy Larsen and Toubro, target of Rs 1385: Merrill Lynch
Posted by : New ChanakyaTracked by: 0 Boarder
Merrill Lynch should look at itself first before giving advice to others. Stupid guys.....
In reply to:
Buy Larsen and Toubro, target of Rs 1385: Merrill Lynch
Posted by : MMB Messenger
Merrill Lynch has maintained its buy rating on Larsen and Toubro (L&T) with a target of Rs 1385, reports CNBC-TV18.
Buy Larsen and Toubro, target of Rs 1385: Merrill Lynch
Posted by : MMB MessengerTracked by: 0 Boarder
Merrill Lynch has maintained its buy rating on Larsen and Toubro (L&T) with a target of Rs 1385, reports CNBC-TV18....
Havent recieved bonus share yet?
Posted by : moneTracked by: 0 Boarder
I have got the BONUS shares of LARSEN in my ICICI Direct account today....
In reply to:
Havent recieved bonus share yet?
Posted by : yug27
Pls check your demat allocation (User allocate button on the portal to see whether any credit is given or not)
Havent recieved bonus share yet?
Posted by : yug27Tracked by: 0 Boarder
Pls check your demat allocation (User allocate button on the portal to see whether any credit is given or not)...
In reply to:
Havent recieved bonus share yet?
Posted by : venkat_mdu
I am also having the same problem. I have 8 L
56 queries on Larsen
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