Hold Larsen, says Tulsian

Investment Advisor SP Tulsian is of the view that one can hold Larsen and Toubro, L&T.

Tulsian told CNBC-TV18, "That’s right, even if you recall the call which is given by FY09 or 10, they have maintained a growth of about 35% on the topline and bottom line, and already the orders on hand is with the extent of about Rs 70,000 crore which is enough for them to keep their 2 year topline intact and we keep hearing and every week it keeps getting the order from the country and from abroad. This nuclear deal will really be a trigger for the company and also like foreign players like Areva TND or the Alstom, they maybe the beneficiary buy amongst the Indian companies."

He further added, "L&T will probably be able to beg a larger pie of those orders and an excellent story for FY09 and one can expect an EPS of about 120 and if you extrapolate the same with a 35% of growth for FY10 we could be having an EPS of close to about 170 and definitely you need to take a long term call. These are the true stocks which one could keep in their portfolio; there is no point in exiting from the stock or even switching out to some other counter maybe it makes a good buy at the current level and the future scenario is very good considering the growth of 35% plus as indicated by the management and then remain invested in the stock and even one can buy at the current level if they have a 6-12 month view."

Disclosure: Analyst doesn't hold the above stock.