The firm believes that there is strong execution and order inflow momentum in domestic market while on the other hand Middle-East buziness is stable with strong inflows from hydrocarbon sector.
Share price of Larsen & Toubro gained 2 percent intraday on September 26 after global research firm Credit Suisse maintained its outperform rating on the stock with target at Rs 1,750 per share.
The firm believes that there is strong execution and order inflow momentum in the domestic market while on the other hand, Middle-East business is stable with strong inflows from the hydrocarbon sector.
There is upside to margins from strong traction and benign commodities. L&T trades at 16x FY21e core business earnings. It further said, cycle momentum needs to build up more for stronger upside.
Another broking firm CLSA has also maintained buy rating on Larsen & Toubro with a target of Rs 1,730.At 1019 hrs, Larsen & Toubro was quoting at Rs 1,479.00, up Rs 28.95, or 2.00 percent. It has touched an intraday high of Rs 1,480.60 and an intraday low of Rs 1,453.05.