Geojit is bullish on Larsen & Toubro Ltd has recommended Buy rating on the stock with a target price of Rs 1515 in its research report dated February 27, 2018.
Geojit's research report on Larsen & Toubro Ltd
L&T is an engineering & construction (E&C) conglomerate. Further, it has presence in IT & financial services sectors. Consolidated sales posted a robust 10% YoY growth in Q3FY18 led by solid execution in infrastructure, hydrocarbon and heavy engineering segments. Order inflow surged 37.8% YoY led by domestic order inflows (up 71% YoY) in hydrocarbon and infrastructure segments resulting in 5% YoY growth in order backlog.
OutlookWe project Sales/PAT CAGR of 12.2/17.5% over FY17-20E. Recovery in domestic business, strong order pipeline, sale of non-core assets, focus on improving RoE & working capital and healthy execution of large order backlog will drive the stock going forward. Hence, we upgrade the stock to BUY as we roll forward our valuation to FY20 with a SOTP based TP of Rs. 1,515.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.