Edelweiss is bullish on Larsen & Toubro has recommended buy rating on the stock with a target price of Rs 1650 in its research report dated November 22, 2016.
Edelweis's research report on Larsen & Toubro
While L&T’s net working capital to sales has improved from 23.5% in FY16 to 22% in Q2FY17, management maintains its medium-term target of 17-18% by FY20-21. Also, the company is committed to improving its RoE to 15% over the medium term. While L&T suffers from near-term uncertainties w.r.t. private capex slowdown and potential impact of demonetisation, we believe the growth story over 3-5 years is largely in place with much better earnings quality over the medium term. We maintain ‘BUY/SO’.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.