Anandrathi expects 39% upside in L&T with a target of Rs 1,894

Anand Rathi Advisory

Larsen and Toubro (LT) is India’s largest E&C company with interests in projects, infrastructure development, manufacturing, hydrocarbon, defence, IT & financial services. The company’s business is spread across national and international markets in over 30 countries.

The company’s business engagement into core, high impact sectors of the economy and its integrated capabilities spanning the entire spectrum provides it an unique edge from its competitors.

With upcoming opportunities in various infrastructure and development projects like Bharatmala, Sagarmala, Inland Waterways, Smart Cities, Amrut, Railways, Defence etc. with a total estimated costs of more than Rs 15 trillion.

We believe Larsen & Toubro being one of the leaders with presence and capability to execute such big complex projects is better placed amongst its peers.

Also, improvement in execution pace, gradual improvement in capital allocation on account of decline in legacy orders, better prospects in its heavy engineering business should further add catalyst to LT.