L&T falls over 2% post Q4 numbers; brokerages mixed
Brokerages have a mixed views on L&T's numbers and its growth prospects in FY20.
NEW DELHI: Shares of Larsen & Toubro (L&T) fell over 2 per cent in morning trade on Monday after the company last Friday reported a 7.91 per cent year-on-year rise in profit (attributable to owners) at Rs 3,418.24 crore for the quarter ended March 31.
The company has acquired another 2 per cent stake in Mindtree by purchasing shares from the open market, taking its overall holding in the mid-sized IT company to 25.94 per cent.
Besides, it has maintained its revenue growth and order inflow guidance at 12-15 per cent and 10-12 per cent for FY20.
Brokerages have a mixed views on the company's numbers and its growth prospects in FY20.
YES Securities has downgraded the stock to hold with a target price of Rs 1,469.
"We downgrade the stock to hold, rating with SOTP based price target of Rs 1,469 to factor in 5 per cent and 6 per cent downward revision in ex-services Ebitda over FY20E and FY21E, respectively," the brokerage said.
On the other hand, Motilal Oswal Securities has maintained a buy rating on the stock and revised the target price upward to Rs 1,850.
"We raise our FY20 earnings estimate by 7 per cent to factor in strong order backlog-led revenue growth. Our target price now increases to Rs 1,850. Adjusted for valuation of the services business, the core E&C business is available at FY20E/21E P/E of 18 times/15 times," the brokerage said.
Shares of L&T traded 2.47 per cent down at Rs 1,321.75 on BSE around 9:45 am.
The company has acquired another 2 per cent stake in Mindtree by purchasing shares from the open market, taking its overall holding in the mid-sized IT company to 25.94 per cent.
Besides, it has maintained its revenue growth and order inflow guidance at 12-15 per cent and 10-12 per cent for FY20.
Brokerages have a mixed views on the company's numbers and its growth prospects in FY20.
YES Securities has downgraded the stock to hold with a target price of Rs 1,469.
"We downgrade the stock to hold, rating with SOTP based price target of Rs 1,469 to factor in 5 per cent and 6 per cent downward revision in ex-services Ebitda over FY20E and FY21E, respectively," the brokerage said.
On the other hand, Motilal Oswal Securities has maintained a buy rating on the stock and revised the target price upward to Rs 1,850.
"We raise our FY20 earnings estimate by 7 per cent to factor in strong order backlog-led revenue growth. Our target price now increases to Rs 1,850. Adjusted for valuation of the services business, the core E&C business is available at FY20E/21E P/E of 18 times/15 times," the brokerage said.
Shares of L&T traded 2.47 per cent down at Rs 1,321.75 on BSE around 9:45 am.
