Buy L&T at current level: SP Tulsian

Tulsian told CNBC-TV18, “L&T numbers are quite satisfied. I don’t think that you should have any complaint on that in spite of maybe some increase in the bottom-line largely due to the reduction in the tax rate and partly because of some other income or maybe the exceptional item. But I think JSW Steel rersults is big disappointment. Maybe it was on the expected line, but even further it has seen a drop in the bottom-line or maybe in the performance.”

He further added, “L&T makes it investment worthy at the current level. They have been little cautious on the maintenance of the EBITDA margin maybe by a drop of about 50 bps and 13.5% EBITDA margin looks little cautious what has been indicated by the management. But I think the kind of growth they are projecting of about 16-18% I don’t think that there are any concerns or complaints. So maybe at the current level the stock makes an investment buy, because generally we have seen that once these market sentiment gets changed we see a good increase or upsurge in the share price of L&T maybe by about 6-10% in a very short time and I think the kind of results we have seen the downside is very limited, the stock having already corrected to a great extent. Maybe a downside of Rs 50, but you get an upside opportunity of close to about Rs 100-150 on the upside in the next month or so.”