Larsen & Toubro (L&T) share price fell over 3 percent in early trade on October 29, a day after the company reported its September quarter numbers.
The company reported a consolidated profit of Rs 5,520.3 crore in Q2FY21, a jump of 118 percent compared to the year-ago period due to the divestment of electrical and automation business to Schneider Electric, France.
Profit before exceptional item stood at Rs 1,410.3 crore for the quarter, falling 44.7 percent compared to Rs 2,551.67 crore in same period last year.
The company recorded consolidated gross revenues of Rs 31,035 crore for the quarter ended September 2020, declining 12 percent YoY due to the lingering impact of the pandemic during the quarter under review, the company said in its BSE filing.
Also Read - L&T Q2 profit jumps 118% to Rs 5,520 crore on E&A unit sale, order inflow declines 42%
Here are the brokerages views on the stock:
Research house Macquarie has maintained outperform call with a target at Rs 1,420. Company’s core E&C continues to suffer due to COVID, reported CNBC-TV18.
Broking house has kept buy rating with a target at Rs 1,400. The valuations are inexpensive and it’s on cusp of next capex cycle upturn. The clear signs of execution picking up in 2H, while full workforce in Q3 should improve execution in H2. It should see more dividends as clarity emerges on subsidiary funding, reported CNBC-TV18.
Credit Suisse has maintained outperform rating with a target at Rs 1,150. The Q2 meets the expectations, while it is lacks spark on dividends, inflows & execution.
The EPC value back to levels seen more than decade ago. The valuations are attractive at current levels, reported CNBC-TV18.
At 09:19 hrs Larsen & Toubro was quoting at Rs 948.65, down Rs 34.20, or 3.48 percent on the BSE.