PN Vijay, Portfolio Manager told CNBC-TV18, “I will go for L&T because if you look at results they are not too bad. You had a decent volume growth, but the EBITDA compression was there. The EBITDA compression was to be expected considering the company was making a strong foray into the international market where the margins are a lot less. Also one saw that the cost pressures have been there."
He further added, "So given the environment in which L&T is working, I think the results were not too bad. If you see the book to bill, it is about 2.55 which is decent when you look at the industrial recovery which is so tepid in India. So given these factors I think the markets were also slightly turning negative after the humongous rally we have had so that also accentuated the free fall in L&T. I would bet for the next one year on L&T because they are very much part of the economic cycle and they have handled the downturn fairly well considering their business profile. I would give L&T a target of closer to Rs 1,800 in the next 12 months."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!
