Buy Larsen and Toubro; target of Rs 1680: Dolat Capital Market

Dolat Capital Market is bullish on Larsen and Toubro has recommended buy rating on the stock with a target price of Rs 1680 in its research report dated January 25, 2021.

Broker Research

January 27, 2021 / 15:04 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Dolat Capital Market's research report on Larsen and Toubro

Q3 execution indicates ongoing improvement as labor availability has fully normalised. Order inflows were strong at Rs732bn and order book continues to be robust at Rs3.31trn. WC, at 26.2% sales, while high, is seen from the perspective of the lower revenue base in 9M. LT remains cautious and continues to withhold guiding on FY21 on inflows or execution, though they view Q4 positively, with further anticipated improvement in execution. On the order front, there is a pipeline of Rs2.65trn in Q4. L&T is focused on working capital and met its 9M liquidity needs fully out of its customer collections.

Outlook

LT is the best play for the recovery in the capex cycle. Its strengths are its size, diversity and balance sheet that gives it competitive advantages. Current valuations care attractive and we maintain Buy with a SOTP based TP of Rs1680.

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