ICICI Direct is bullish on Larsen and Toubro has recommended buy rating on the stock with a target price of Rs 1675 in its research report dated July 24, 2019.
ICICI Direct's research report on Larsen and Toubro
L&T's standalone revenues for Q1FY20 grew 16.3% YoY to Rs 17672 crore (above our estimate of Rs 16716.2 crore). Proforma standalone revenue grew 16.7% to Rs 16498.9 crore (excluding E&A business). On a consolidated basis, revenues (excluding E&A business) grew 9.7% to Rs 29636 crore YoY. On a standalone basis, infrastructure & heavy engineering segment revenues grew 16.8% to Rs 13356.7 crore and 163% to Rs 991 crore YoY, respectively. L&T registered strong order inflows of Rs 38700 crore at the group level, up 11% YoY while the order backlog was at Rs 294014 crore, up 21% YoY. Standalone EBITDA margins came in at 7.4%, down 100 bps owing to stage of execution and job mix. Consolidated PAT came in at Rs 1473 crore, up 21% YoY. Net working capital ratio deteriorated 200 bps to 23% YoY. Note: E&A business reported as discontinued operations.
Outlook
We value L&T on SoTP (with base business at 20x FY21E EPS) with a revised target price of Rs 1675 and maintain BUY on L&T.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
