Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More
you are here: HomeNewsBusiness

Buy Larsen and Toubro; target of Rs 1640: ICICI Direct

ICICI Direct is bullish on Larsen and Toubro has recommended buy rating on the stock with a target price of Rs 1640 in its research report dated January 27, 2021.

January 28, 2021 / 05:00 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Larsen & Toubro


L&T’s adjusted standalone revenues (ex-E&A business) for the quarter degrew 1.3% YoY to Rs 19619.8 crore vs. our estimate of Rs 19984.8 crore. On standalone basis, infrastructure segment revenue (contributing ~77%) fell 7.9% to Rs 15106.8 crore YoY due to job mix and site productivity though execution improved sequentially due to higher work force mobilisation and supply chain normalisation. On a consolidated basis, adjusted revenues from continuing operations fell 1.8% to Rs 35596.3 crore YoY. During the quarter, standalone EBITDA margins improved 210 bps to 9.5% (vs. our estimates of 8.0%) on a YoY basis led by control on operating expenses, job mix and better performance in others segments. On a consolidated basis, EBITDA margins came in at 10.5% (vs. 11.1% in Q3FY20).


Outlook


We value L&T on SoTP (base business at 20x FY23E EPS of Rs 49.5) basis with a target price of Rs 1640 (earlier TP of Rs 1045). We change our rating from HOLD to BUY.


For all recommendations report, 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.

Broker Research
first published: Jan 28, 2021 05:00 pm

stay updated

Get Daily News on your Browser
Sections