Prabhudas Lilladher is bullish on Larsen & Toubro has recommended buy rating on the stock with a target price of Rs 1541 in its research report dated November 22, 2016.
Prabhudas Lilladher's research report on Larsen & Toubro
The stock is trading at 15xFY18E earnings. We have cut our earnings estimate by 4% for FY17& FY18 to factor in weak execution. The company continues to focus on its strategic plan of achieving profitable growth and improving RoE in medium term. We Maintain ‘BUY’ with TP of Rs 1541 (Previous Rs 1590) given its strong business model, diverse skill sets, strong execution capabilities and relatively healthy/large balance sheet and being the go to go company in the Indian infrastructure space. We expect company to deliver 21% earning CAGR over FY16‐18E. Maintain ‘BUY’.
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