Shirish Rane, Head-Research at IDFC Securities told CNBC-TV18, "In Larsen and Toubro (L&T) the order flow guidance was muted and we did not expect the cut from 10-15 percent to 5-7 percent. I think it was the outcome of losing a few orders in the power sector and probably one odd order in dedicated freight corridor (DFC). But, overall, we think the order backlog is pretty strong at Rs 2.4 trillion and if they are able to execute this order backlog over the next 18-24 months, the bottomline could be very healthy at about 20-25 percent growth over the next 18-24 months. And that is why we believe that L&T is a good pick at current Rs 1,350 levels."He further added, "The stock has corrected about 12-13 percent in the last one month because of the expectation of poor results. So, we believe that the poor results are factored in at the current price and from here on, the key thing is if they can execute their order backlog and report a 14-15 kind of revenue growth, then the stock should really do well over the next 12 months."
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