JPMorgan raises L&T to 'overweight' on orders

JPMorgan upgraded Larsen & Toubro to "overweight" from "neutral" and raised its target price after the company announced orders worth Rs 9400 crore this week.

Fresh orders take the tally of disclosed orders in the January-March quarter to 154 billion rupees, JPMorgan says in a note, adding the company appears well-poised to comfortably exceed the lower end of FY13 order inflow growth guidance of 15-20 percent.

An expected recovery in the capex cycle and valuations are also making L&T shares more attractive, JPMorgan says.

"The capex cycle has bottomed out and L&T is best-positioned to benefit from a recovery in our view," JPMorgan says.