Prefer L&T for long term: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Clearly the doubt still persists in terms of how the energy and crude prices are moving at this point of time and execution again has been a sort of a deterrent for the Larsen and Toubro (L&T) from a medium-term perspective. However, having said that, the order book is quite robust, close to Rs 2,56,000 crore odd. So, that gives decent revenue visibility. You are talking about the networking capital cycle actually getting peaked off around 24-25 percent mark.""I think the negatives that the stock carries along with the entire sector is the kind of order flows that one really expects to be very tepid over the next few quarters, execution again is going to be extremely key. Clearly, if you are talking about a slowdown happening, the hydrocarbons business might have some amount of issues but it has been strongly resilient over the last few quarters," he said."So, what L&T has apart from its standalone engineering and hydrocarbons division is its IT business as well. So, any listing there off over the next few quarters, what it does with its real estate arm, the SOTP valuation also taking into account, the finance arm that L&T has got in terms of L&T Finance Holdings, clearly I think you are talking about a company which is in the right scheme of things for the Indian economy." "We are not seeing the right moves in terms of the credit cycle and that is why the tepidness probably in a lot of these stocks, it might for all eventuality along with the markets correct another 10-12 percent from the current level but in my opinion that gives a better entry point for the investor. You should have a longer time horizon of a year, year and a half to say the least."