Sanjeev Zarbade, Analyst at Kotak Securities CNBC-TV18, "This is quite a difficult environment in the domestic side and ultimately Larsen and Toubro (L&T) has capabilities in executing large projects. They should be looking at new geographies. They only have to be concerned about the margins. The feelings that we are getting from the management is that new projects are not really margin dilutive. If they can ensure that then we are quite okay with the management strategy so far as diversification on a geography side."
He further added, "Clearly there is business in the middle-east in the oil and gas sector, infrastructure sector, there is FIFA world cup that will be there at Qatar. That will throw up some opportunities on the infrastructure side. Even on the metro side there is lot of opportunities. I believe with L&T the kind of execution capability they have, they should be looking at these opportunities."
"We have a price target of Rs 890. We had upgraded the stock when the stock was down and we have a buy rating on the company. We continue to have a positive outlook on the stock," Zarbade said.
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