One can accumulate Larsen and Toubro (L&T) at the current price with a target of Rs 1740, says Sanjeev Zarbade, Analyst, Kotak Securities.
Zarbade told CNBC-TV18, "On Larsen and Toubro (L&T) we have a price target of Rs 1740 and have accumulate rating. Basically we find that the valuations at the current price are reasonable, however it needs to be noted that the capital goods sector is not out of the woods and the data that we are getting in terms of the Index of Industrial Production (IIP) capital goods index which came at negative 1.8 percent."
He further added, "The outlook provided by the global Multinational Corporations (MNC) like Cummins, Caterpillar and Siemens are also pointing to a very muted to a negative kind of a growth outlook in 2013. All in all it is a sector which is currently showing weak trends but the valuation for L&T is now reasonable and in that context we are recommending accumulate at the current price."