Short Larsen & Toubro: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "I don’t think Larsen & Toubro Infotech would be a very major trigger because of the contribution being not so significant. It is an Rs 1,200 crore offer for sale (OFS) that they have managed which in any case has come to their pockets. So, Larsen and Toubro (L&T) the parent has pocketed that money. However, the 84 percent plus that they own now would also have potentially led to a decent upside had the stock been let us say at Rs 750 or whatever. So, there you would have to kind of re-do the math and wait for the price to stabilise and then kind of accord some value which would be lower than what we had factored in.""The second thing is on the parent business itself, I believe last quarter was a huge ramp up in terms of realisations and order booking. This particular quarter given the kind of data that is coming out from the industry bodies which are focused onto capital goods and project execution, they don’t seem to be as strong. So, we have not seen a series of results come out from that sector yet. L&T also is in the month of August but as and when that happens, we will start staring at some weakness on that side of the business also," he said. "So, the first quarter could probably belie all the expectations that people had built in and the kind of ramp up we saw when the price after the results were out, so this whole thing of L&T still kind of not having touched its golden trajectory in terms of project execution, order booking will kind of get questioned. So, my sense is L&T as a stock also in the short-term is a very good trading bet to go short on."