Lokesh Garg of Kotak Institutional Equities told CNBC-TV18, "What is happening to L&T is essentially symptomatic of rest of the sector as well. If we look at results of Thermax, Siemens, Cummins India, everybody is having the same problem. L&T maybe the better off because the other companies have had 10-15 percent decline, L&T still had a revenue growth of about 5 percent which is possibly also driven by the fact that the company has managed the cycle better in terms that it has got business in areas which are less dependent on industrial and infrastructural capex, essentially real estate. Now L&T has started to get meaningful business from Middle East as a geography as well."
"From two years perspective we are at least advising clients to add L&T. We believe valuations are reasonable and to that extent giving credit for the company to have managed it well so far. However, this does not deny the fact that essentially L&T also operates in the same environment in which these other stocks are operating. To that extent it could have near-term downside or negative surprise in operating performance in next couple of quarters," he adds.
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