Hold Larsen & Turbo, says PN Vijay

Vijay told CNBC-TV18, “Larsen & Turbo (L&T), one of their largest projects and the market is skittish that it reacts to any news, any assemble of news or source-based news even not factual news. The market just pulls the stock down especially the largecaps because it’s so easy to built short positions in them and then go out a couple of days later and make some profit.”

He further added, “The business conditions for L&T are improving in the sense in their two main verticals the surface transportation and in electrical equipment. One is seeing some investment traction. For example the NHAI has supposed to have issued more orders in the last two months than it has done ever in a 2 months period and even in power the Transmission and Distribution (T&D) segment is seeing more order flow after the state governments are bailing out the electricity boards. So a broad environmentally, the big negative that L&T had that it was- the Indian infrastructure was a disaster is slowly going away. So, I don’t see any great reason to sell L&T, but I would rather look for this quarter’s results and what the management is saying before I would like to increase my exposure to the stock. So as of now my view is stay put on L&T.”