SENSEX NIFTY
Sep 10, 2013, 01.31 PM IST | Source: Moneycontrol.com

L&T soars 7%, Goldman Sachs adds it to conviction buy list

Goldman Sachs added the stock to its conviction buy list. The brokerage house has set a target price on the stock at Rs 906 apiece on the back of increasingly attractive valuation and risk-reward, visible growth, balance sheet strength and good execution track-record.

Moneycontrol Bureau

Larsen and Toubro (L&T) shares surged 7 percent in noon trade Tuesday, continuing its upward journey for the fourth consecutive session.

Goldman Sachs added the stock to its conviction buy list.

The brokerage house has set a target price on the stock at Rs 906 apiece on the back of increasingly attractive valuation and risk-reward, visible growth, balance sheet strength and good execution track-record.

Meanwhile, Ajay Bodke, head of investment strategy & advisory at Prabhudas Lilladher is bullish on engineering conglomerate L&T .

"We are betting that the country's capex cycle should see some sort of a revival in a couple of quarters from now. Hundred and fifty seven large projects worth Rs 1.6 lakh crore were cleared by CCI in July end. In August, we have seen further 87 projects worth Rs 1.8 lakh crore being cleared out of which around 18 projects of Rs 85,000 crore are in power sector. L&T is ideally placed to ride any improvement in the capex cycle that should eventually happen in a quarter or two down the line. Hence we are advocating investors to have L&T as part of the core portfolio," Bodke said in an interview with CNBC-TV18 on August 6.

At 12:39 hours IST, the stock rose 6.95 percent to Rs 806 on the Bombay Stock Exchange. It rallied 16 percent in four consecutive sessions from August 4.

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