Buy Larsen and Toubro, target of Rs 3581: IIFL

IIFL has recommended a buy rating on Larsen and Toubro with a target price of Rs 3581 in its July 9, 2008 research report."L&T has won an EPC contract worth Rs 10.5 billion from the Indian Railways for a cast-steel wheel manufacturing plant in Bihar. The project is to be completed in two years. "

"We expect L&T to report strong 41% YoY revenue growth during 1QFY09 and estimate EBITDA margins will remain stable. However, profit growth would be muted at 8% YoY as the year-ago period’s profit was boosted by foreign-exchange gains, buy target Rs 3581," says IIFL's research report.

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