Gautam Sinha Roy, VP, equity strategy and product of Motilal Oswal Securities told CNBC-TV18, "Larsen and Toubro (L&T) is one stock that one would advice buying because results will be announced on Monday – lately we have seen that analyst on the street generally is not expecting spectacular numbers from L&T to be delivered in terms of the quarterly results."
He further added, "Atleast on order flows front the last quarter has been a path breaking quarter for L&T as it bagged one of the largest orders in the Saudi Arabia region in the hydrocarbon space, which should really shore up the order book and order inflows on a year-on-year basis. It should look good and if it combines this with any positive surprise on the results front, profit and loss (P&L) front that should really eat the stock."
"Valuations are also supportive and if we look at the standalone price-to-earnings (PE) that would be around 13 times ex the subsidiary valuation. I think there is a good chance that L&T could take more support from here. It is a bit of a contrary bet, but one that I am willing to take at this time," Roy added.
Roy further said, "As far as BHEL is concerned really it is a no-brainer that the stock in the long-term can’t really go up because of its huge concerns about its future business opportunity and growth. One of the few Nifty stocks where one can expect earnings per share (EPS) de-growth for the foreseeable future. So no point really, wondering why BHEL will fall, it will be falling and we can’t really predict till when. But it is going to be one of the weakest counters you will come across for sure."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
