L&T a best pick: PN Vijay

PN Vijay, Portfolio Manager, www.askpnvijay.com is of the view that Larsen and Toubro is arguably the best pick in the Indian infrastructure because the company has a strong balance sheet.

PN Vijay told CNBC-TV18, “Larsen and Toubro (L&T) is arguably the best pick in the Indian infrastructure because the company has a strong balance sheet. Their EBITDA margins have stabilised and the big problem with was the order flow and we saw some improvement in the last quarter and also in the execution. If you saw the execution percentage in L&T’s first quarter that was quite good and surely this quarter as you have been mentioning orders have been coming in, not great ones, Rs 1000 crore, Rs 1500 crore, Rs 2000 crore, which shows that all their verticals are busy." He further added, "So, as I was saying a bit earlier if one wanted to start accumulating blue chip economy-related stocks, L&T would be about the best. Of course, they have a large appetite for power projects and you need to see more action on awarding power projects. So that’s a very large segment and that might disappoint people in the short-term. But I think other portion for the infrastructure space in their products division are pretty robust and if one wanted to sort of start moving some of one’s profits onto infrastructure blue chips with a 12-month time frame, L&T would be an ideal choice.”