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Last Updated : Jan 03, 2014 11:33 AM IST | Source: Moneycontrol.com

Reduce Larsen & Toubro, recommends Kotak Securities

Kotak Securities has recommended a reduce rating on Larsen and Toubro (L&T) with a revised target price of Rs 1050 (Rs 960 earlier), in its January 2, 2014 research report.

 
 
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Kotak Securities' report on Larsen and Toubro (L&T)


L&T, the management does see potential risk to project finalization due to the upcoming general elections. However, it maintains that despite this the company should be in a position to meet its target order accretion of Rs 1.0 trn as ordering from domestic urban infrastructure projects as well as from overseas locations remains robust. Although we remain broadly positive on L&T in terms of order intake and execution, we note that the stock has given strong returns of ~ 54 percent from market lows. Post Q2FY14 results, the stock has rallied 23 percent on the back of signs of domestic execution gaining momentum and improvement in gross margins. At our revised target price of Rs 1050 (Rs 960 earlier), there is a minor downside to the stock. As a result, we move rating to "Reduce" from "Accumulate" earlier," says Kotak Securities research report.


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First Published on Jan 3, 2014 11:33 am
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